The Town of Dillsboro is located in Dearborn County. US Highway 50 cuts through the municipality intersecting with Interstate 65 approximately 48 miles to the west. Interstate 275 lies 14 miles to the east.
Dillsboro was laid out in 1830. It was named for James Dill, a general in the War of 1812 and local resident.
The Dillsboro post office, established in 1837, was spelled Dillsborough until 1893.
As of the 2010 census, there were 1,327 people, 520 households, and 320 families residing in the town.
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