Princeton, the county seat of Caldwell County, is located at the junction of US 62 and KY 91, just south of the Western Kentucky Parkway. In 1817 it was named Princetown to honor William Prince, an early settler, and the spelling was later changed to Princeton.

In 1838, the residents of the city witnessed the forced march of much of the Cherokee Indian Nation along the Trail of Tears through Princeton. During the Civil War, Princeton was subject to raiding and foraging parties of both Confederate and Union armies. Princeton was a center for fire-cured tobacco and violence during the Black Patch War. Princeton now celebrates the harvest of dark tobacco with the annual Black Patch Festival each autumn.

Industry came in 1918 when Princeton Hosiery Mills opened. With the building of interstate highways, and the Western Kentucky Parkway, the Princeton area remained an important transportation center for Western Kentucky. With this transportation network complete, the city was able to attract other industries. Products manufactured in Princeton include commercial bakery products, flatbed semi-trailers, race car products, metals and limestone products.