Originally Winchendon was heavily agricultural but in the early 19th century there was industrial development along the Millers River. Textile manufacturing with spinning machinery was set up in 1816 on the river and the town became so large a producer of shingles that it inherited the nickname of "shingletown".

Cotton and wool fabric was manufactured and significant amounts of woodworking were done. The railroad from Ashburnham to Keene, New Hampshire went through Winchendon, providing easy transportation of goods and bringing in immigrants, primarily from Ireland, to work the mill jobs.

Winchendon Mass is located in North central Massachusetts, bordered by Royalston on the west; Fitzwilliam and Rindge, New Hampshire, on the north; Ashburnham on the east; and Gardner and Templeton on the south. Winchendon is 16 miles west of Fitchburg, 40 miles east of Greenfield, 63 miles northwest of Boston.