High Shoals was founded by Swiss-born John Fulenwider in the year 1795. During the War of 1812 Fulenwider's ironworks produced cannonballs for the United States Army. Fulenwider died in 1826 and is buried in the Fulenwider Family Cemetery.

During the last decade of the 19th century, the community of High Shoals became completely owned by High Shoals Mills, which was a textile company founded by Charlotte industrialist Daniel A. Tompkins.

Once a totally-owned textile community, was incorporated on November 6, 1973, making it Gaston County's newest municipality governed under the Mayor-Council plan.