The region where Atlanta and its suburbs were built was originally Creek and Cherokee Native American territory. The Creek land in the eastern part of the metro area (including Decatur) was opened to white settlement in 1823. In 1835, leaders of the Cherokee nation ceded their land to the government in exchange for land out west under the Treaty of New Echota, an act that eventually led to the Trail of Tears. In 1836 the Georgia General Assembly voted to build the Western and Atlantic Railroad to provide a trade route to the Midwest, with the area around Atlanta--then called Terminus--serving as the terminal. The Terminus was originally planned for Decatur, but its citizens did not want it. Besides Decatur, several other suburbs of Atlanta predate the city by several years, including Marietta and Lawrenceville, GA. The Terminus grew as a railroad town; later it was renamed Marthasville after then-Governor Wilson Lumpkin's daughter Martha. Marthasville was renamed Atlanta in 1845 and was incorporated as such in 1847.

In 1864, the city became the target of a major Union invasion (the subject of the 1939 film Gone with the Wind). The area now covered by Atlanta was the scene of several battles, including the Battle of Peachtree Creek, the Battle of Atlanta, and the Battle of Ezra Church. On September 1, 1864, Confederate General John Bell Hood evacuated Atlanta after a four-month siege mounted by Union General William Sherman and ordered all public buildings and possible union assets destroyed. The next day, mayor James Calhoun surrendered the city, and on September 7 Sherman ordered the civilian population to evacuate. His forces occupied the city for several months, and he then ordered Atlanta burned to the ground on November 11 in preparation for his punitive march south. After a plea by Father Thomas O'Reilly of Immaculate Conception Catholic Church, Sherman did not burn the city's churches or hospitals. The remaining war resources were then destroyed in the aftermath and in Sherman's March to the Sea. The fall of Atlanta was a critical point in the Civil War, giving the North more confidence, and (along with the Battle of Mobile Bay) leading to the re-election of Abraham Lincoln and the eventual surrender of the Confederacy.

After the war, Atlanta was gradually rebuilt and soon became the industrial and commercial center of the South. From 1867 until 1888, US Army soldiers occupied McPherson Barracks (later renamed Fort McPherson) in southwest Atlanta to ensure Reconstruction era reforms. To help the newly freed slaves, the federal government set up a Freedmen's Bureau, which helped establish what is now Clark Atlanta University, one of several historically black colleges in Atlanta. In 1868, Atlanta became the fifth city to serve as the state capital. Henry W. Grady, the editor of the Atlanta Constitution, promoted the city to investors as a city of the "New South," by which he meant a diversification of the economy away from agriculture and a shift from the "Old South" attitudes of slavery and rebellion. As part of the effort to modernize the South, Grady and many others also supported the creation of the Georgia School of Technology (now the Georgia Institute of Technology), which was founded on the city's northern outskirts in 1885.

As Atlanta grew, ethnic and racial tensions mounted. A race riot in 1906 left at least twelve dead and over seventy injured. In 1913, Leo Frank, a Jewish supervisor at an Atlanta factory, was put on trial for raping and murdering a thirteen-year old white employee. After doubts about Frank's guilt led his death sentence to be commuted in 1915, riots broke out in Atlanta and Frank was lynched.

In the 1930s, the Great Depression hit Atlanta. With the city government nearing bankruptcy, the Coca-Cola Company had to help bail out the city's deficit. The federal government stepped in to help Atlantans by establishing Techwood Homes, the nation's first federal housing project in 1935. With the entry of the United States into World War II, soldiers from around the Southeastern United States went through Atlanta to train and later be discharged at Fort McPherson. War-related manufacturing such as the Bell Aircraft factory in the suburb of Marietta helped boost the city's population and economy. Shortly after the war in 1946, the Communicable Disease Center, later called the Centers for Disease Control and Prevention (CDC) was founded in Atlanta from the old Malaria Control in War Areas offices and staff.

In 1951, the city received the All-America City Award, due to its rapid growth and high standard of living in the southern U.S.

In the 1960s, Atlanta was a major organizing center of the civil rights movement, with Dr. Martin Luther King and students from Atlanta's historically black colleges and universities playing major roles in the movement's leadership. On October 19, 1960, a sit-in at the lunch counters of several Atlanta department stores led to the arrest of Dr. King and several students, drawing attention from the national media and from presidential candidate John F. Kennedy. Despite this incident, Atlanta's political and business leaders fostered Atlanta's image as "the city too busy to hate". In 1961, Mayor Ivan Allen Jr became one of the few Southern white mayors to support desegregation of Atlanta's public schools. While the city mostly avoided confrontation, small race riots did occur in 1965 and in 1968.

In 1990, the International Olympic Committee selected Atlanta as the site for the 1996 Summer Olympics, however, many felt that Athens should have had the right to host these games because it was the 100th anniversary of the Olympics and Athens felt it could usher in the second century of Olympics. (A year after the Atlanta Games, Athens would be awarded the 2004 Summer Olympics.). Following the announcement, Atlanta undertook several major construction projects to improve the city's parks, sports facilities, and transportation. Former Mayor Bill Campbell allowed many "tent cities" to be built, creating a carnival atmosphere around the games. Atlanta became the first American capital city to host the Olympics. The games themselves were a wonderful achievement in sports, but were marred by the Centennial Olympic Park bombing, which resulted in the death of two people and injured several others. The bombing was carried out by Eric Robert Rudolph.

For several decades, Atlanta had been among the most violent cities in North America but in recent years the city has reduced violent crime considerably. In 2005, Atlanta recorded 89 homicides — the lowest total since 1963, and an almost 40% decrease from the 151 killings reported in 2002.

However, in 2005 Atlanta received media attention for the high-profile Brian Nichols manhunt, who became internationally known as the "Courthouse Killer". In addition, broadcast media focused attention on a standoff involving a murder suspect (not an Atlanta resident) who perched himself on top of a construction crane for several days in the upscale Buckhead district.

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