It was an Anglo-Saxon settlement. Both North Walsham and the neighbouring Worstead became very prosperous from the 12th century through the arrival of weavers from Flanders. "Walsham" was a light-weight cloth for summer, and "Worsted" a heavier cloth. The 14th century "wool churches" are a testament to the prosperity of the local mill owners.
North Walsham was involved in the Peasants' Revolt of 1381. The peasants' leaders were defeated at the Battle of North Walsham.
Horatio Nelson and his brother William were educated at Paston School in North Walsham.
The town is on the North Walsham & Dilham Canal, still privately owned by the North Walsham Canal Company.
As part of the Millennium celebrations, ten mosaics were commissioned, showing scenes from local history, including the Peasants' Revolt and the Great Fire of North Walsham, also a picture of a Norfolk wherry - an allusion to the canal.