The lands of Beacon Falls first appear in history when Milford was settled in 1639. The northern boundary of Milford was Beacon Hill Brook, separating the hunting grounds of the Paugasuck and Tunxis Indians. First landowner, Captain Ebenezer Johnson purchased three parcels in the vicinity of Pines Bridge in 1678. Ensign Riggs and Jeremiah Johnson bought land in 1680. Early in 1871, John Wolfe and others petitioned the Assembly for the creation of a new town, Beacon Falls, out of portions of Bethany, Naugatuck, Seymour and Oxford.
The town of Beacon Falls was so named from Beacon Hill, and from which a small but beautiful waterfall descended. When the town was named there was considerable desire to call the new district Home after the Home Woolen Mill. Beacon Falls is one of the smallest towns in New Haven County and next to Ansonia is the youngest.