The area around the town has been occupied since pre-Roman times. The remains of an Iron-Age hill fort are visible atop Caerlee Hill and defensive ditch works are visible on the hill of Windy Knowe. A semi-permanent Roman marching camp was discovered on the flood plain by the River Tweed.
Like other places in the Borders, Innerleithen's success is built on wool and knitwear, but its fame sprung from its health-giving spring, subject of Sir Walter Scott's 1823 novel Roman's Well.
Nearby 7stanes Innerleithen is regarded as one of the best and most challenging downhill tracks in the UK. The centre offers many exciting, adrenaline-pumping routes and has been a popular downhill race venue for many years.
Innerleithen has held the annual Border Games since 1827. Nearby, Traquair House is the oldest inhabited house in Scotland.