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The area that became Menomonee Falls was first inhabited by Native Americans, including the people of the Menomonee and Chippewa tribes.

Menomonee Falls continued to grow throughout the 1870s. By 1890, the population was 2,480. In 1892, a section of Menomonee Falls was incorporated as a village. In 1894 the first village board was elected and the first village fire department formed. After becoming a village, many important buildings were built, including the village hall/fire station, Menomonee Falls High School, and the Wisconsin Sugar Factory. The Wisconsin Sugar Factory employed as many as 500 laborers and produced up to 15 million pounds of sugar annually.

The first public telephone service was offered in 1902; a local electricity plant offered a substitute for kerosene lamps by 1907; water mains were installed in the 1910s; and the first sewer lines were laid in 1924. New neighborhoods were developed and the Menomonee Falls Public Library was built. The village's second bank, the Farmers and Merchants Bank, was established in 1908 by attorney Samuel A. Connell. By 1910, automobiles started being sold in the village, which led to an increase in paved roads. By 1919, Highway 15 connected Menomonee Falls to Milwaukee and Illinois and, by 1922, to Green Bay.

In the early 20th century, a new municipal building was built to house village offices, the fire department, the police department, and a new Menomonee Falls Public Library. A subdivision named Hiawatha Heights added 58 single-family homes with 95% of the home buyers relocating from Milwaukee. By 1940, the population had come to 3,674. Along with all of this, the building of shopping areas had begun, including the Hiawatha Shopping Center, which today can be seen along Appleton Avenue, with Krueger's Entertainment and Pop's Custard as the main attractions.

In the 1950s more subdivisions were built, and US 41 was completed. This increased the attractiveness of Menomonee Falls as there was now an easy commute to Milwaukee jobs. In 1958, the village of Menomonee Falls annexed the Town of Menomonee Falls, which increased the total area from 2 square miles to 32 square miles and the population from 4,500 to 12,000.

In the 1960s the school district built six new schools because of population growth in the baby boom era. In 1965, a can manufacturing plant with a capacity of 150 million cans per year was established in the village, owned by Containers, Inc., a joint venture of the Miller Brewing Company and Carnation Company. "By the end of the 1960s, 48 percent of the population in the Village was 19 years old or under." Both a better park system and better public services were developed. Several full-time police officers were hired, along with full-time firefighters. Shopping centers were developed and major employers established in the village, including Harley-Davidson and Wacker Neuson. Old structures were razed to make way for several new streets.

Near the end of the 20thcentury, Menomonee Falls continued to grow in population. Between 1990 and 2010, the population had grown by almost 9,000. New subdivisions and apartments were built in the community. Reports in 2016 state, "As of 2016, the Village had an estimated 36,907 residents and had become an important economic hub of Greater Milwaukee area." Major business developments include Kohl's Corporate campus and the Westbrook Corporate Center. A new village hall/municipal center was built and a new Library.

As of the census of 2010, there were 35,626 people, 14,567 households, and 10,028 families residing in the village. The population density was 1,082.2 inhabitants per square mile (417.8/km2). There were 15,142 housing units at an average density of 460.0 per square mile (177.6/km2). The racial makeup of the village was 91.6% White, 3.0% African American, 0.2% Native American, 3.5% Asian, 0.4% from other races, and 1.3% from two or more races. Hispanic or Latino of any race were 2.0% of the population.

There were 14,567 households, of which 30.5% had children under the age of 18 living with them, 59.1% were married couples living together, 6.9% had a female householder with no husband present, 2.9% had a male householder with no wife present, and 31.2% were non-families. 26.8% of all households were made up of individuals, and 14% had someone living alone who was 65 years of age or older. The average household size was 2.43 and the average family size was 2.97.

The median age in the village was 43.3 years. 23% of residents were under the age of 18; 6% were between the ages of 18 and 24; 23.5% were from 25 to 44; 29.6% were from 45 to 64; and 17.8% were 65 years of age or older. The gender makeup of the village was 48.2% male and 51.8% female.