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Troy is located in the heart of Montgomery County within North Carolina's southern Piedmont corridor. Before European arrival, the area was inhabited by Native American groups, including the Keyauwee and Cheraw, who lived in the longleaf pine and hardwood forests that characterized the region. In the 18th century, settlers from Scotland and Ireland moved southward into the area, establishing farms, trading posts and mills along the Little River and its tributaries. When Montgomery County was formed in 1779 from part of Anson County, the future community that would become Troy was part of this frontier landscape.

By the mid-19th century, the growth of Troy accelerated. Known previously as West Old Fields, the town was renamed Troy in 1843 when the county seat was relocated. In 1852 Angus McCaskill donated fifty acres for the town's development, and a courthouse and supporting civic infrastructure soon followed. The arrival of railroads and the growth of lumber, turpentine, and textile operations fostered commercial and industrial vitality. The timber industry, in particular, tapped into the abundant longleaf pines of the region, and the town served as a hub of sorting, shipping and manufacturing of wood products.

Infrastructure expansion in Troy included the laying of rail lines that connected the town to broader markets, and improved road networks such as North Carolina Highways 24 and 27, which pass through or near the town. The strategic positioning of these routes encouraged business development and accessibility, enabling Troy to transition from rural outpost to service center. The construction of public utilities, schools and paved streets in the early 20th century further anchored the town's evolution.

The social fabric of Troy has long been anchored in community institutions. Churches, public schools and civic groups have held central roles, and annual events and festivals celebrate local heritage. The downtown district retains historic architecture, and the presence of the Uwharrie National Forest nearby adds to the region's character and appeal. As the timber and textile industries declined in the later 20th century, Troy refocused on education, small business, and tourism connected to outdoor recreation.

Today Troy offers residents a mix of historic small-town charm and natural amenities. With a location close to the Uwharrie Mountains and national forest, the town is attractive to those seeking outdoor access, simpler living, and affordable housing. Though modest in size, it provides essential services and maintains a sense of community distinct in the Piedmont region. Its future lies in honoring its roots while adapting to new opportunities in recreation, planned growth and regional connectivity.