The village is built where the rivers French and Waugh enter a natural harbour, and it gets it name from the Mi'kmaq 'Takumegooch' meaning 'meeting of the waters'.

The first European settlers were Acadian, and it was a transshipment point for goods bound for Fortress Louisbourg. In 1755 the British expelled the Acadians and the village was destroyed. All that remains from that period are some Acadian dykes and French place names.

Protestant repopulation began in 1765, and grew considerably before the end of the century with a flood of Scottish immigrants following the Highland Clearances. In the nineteenth century, like many other villages in this area, Tatamagouche had a sizeable shipbuilding industry.

You can learn more about the history of the area at the Sunrise Trail Museum.  Tatamagouche Creamery made butter for over a century. It has now been converted as a venue for festivals, events and entertainment.  The Fraser Cultural Center acts as a visitor information center, art gallery and has an exhibition about the giantess Anna Swan.

The Intercolonial Railway station was built in 1887 and served the community of Tatamagouche as a Train Station until 1972. Daily self guided tours of the Train Station and it's railway cars are free. The Station's 9 railway cars include 6 cabooses, 2 box cars and 1 transfer van. The property now operates as a Country Inn, Gift Shop and Cafe. The rail line has gone, and the bed now forms part of the Trans Canada Trail, making Tatamagouche a good starting point for a waterfront walk or biking expedition.

In late September, Tatamagouche hosts the second largest Oktoberfest in Canada where you can dance to the oom-pah-pah of traditional German music.