Abenaki Indians called the falls Anmecangin, meaning “much fish”. The area was once part of Little River Plantation, a portion of which was incorporated in 1799 as Thompsonborough, then renamed in 1802 after Lisbon, Portugal. In 1806, Lisbon annexed the remainder of Little River Plantation. With water power from the Androscoggin River, Lisbon Falls became a small mill town. Before it burned down in 1987, the Worumbo Mill was the main mill in Lisbon Falls. It had been incorporated in 1864, and was world-famous for its woolens. Especially well known were its vicuña wool products, which became famous when President Eisenhower’s Chief of Staff, Sherman Adams, received a vicuna sport coat as a gift from a wealthy industrialist and had to resign due to the resulting scandal. The town’s primary employment was at a gypsum mill, which closed in 2009. Another large employer is Bath Iron Works, in nearby Bath, Maine.

The town is famous for its Moxie Days, a celebration of the soft drink Moxie, which is sold at Frank Anicetti’s corner store. The store’s official name is the Kennebec Fruit Company, but it is commonly referred to as The Moxie Store and is recognizable by its bright yellow paint job. Moxie Days in Lisbon Falls is attended by thousands from around the world each summer.