The city is in the centre of an important agricultural region with many dairy farms. There is also some industry in the region. An important business is the manufacture of hockey sticks. More hockey sticks are made in Sherbrooke than anywhere else in the world.
The area of Sherbrooke was first settled in 1796. In 1818 it received its current name, being named after Governor General Lord Sherbrooke.
The city grew considerably on January 1, 2002, by the mergers of the cities of Sherbrooke, Ascot, Bromptonville, Deauville, Fleurimont, Lennoxville, Rock Forest, and Saint-Élie-d'Orford.
The city is the site of the University of Sherbrooke and Bishop's University.