The headquarters of the popular Teddy Bear manufacturer Boyds Bears as well as the oldest operating family-run cigar manufacturer in the U.S. (since 1863), F.X. Smith & Sons, are located in McSherrystown.

McSherrystown is the fourth oldest town in Adams County. Its founder, Patrick McSherry (1725–1795) having family origins stemming from Newry, Northern Ireland, procured a 300-acre (1.2 km²) tract from the Digges Family in 1763 and proceeded to lay out a number of 5-acre (20,000 m²) lots. The first known deed for one of these lots was dated June 27, 1765. Although McSherry may have intended his effort to be used primarily as outlots for Hanover residents, where they could keep their animals at times and obtain wood, it soon developed into a full-fledged town. McSherry, who lived in Mount Pleasant Township in 1765 and was later tavern-keeper in Littlestown, may never have lived in the town which bears his name.

McSherrystown is located at 39°48′15″N 77°1′9″W / 39.80417°N 77.01917°W / 39.80417; -77.01917 (39.804202, -77.019301).

According to the United States Census Bureau, the borough has a total area of 0.5 square miles (1.3 km²), all land.

As of the census of 2000, there were 2,691 people, 1,175 households, and 727 families residing in the borough. The population density was 5,138.7 people per square mile (1,998.1/km²). There were 1,231 housing units at an average density of 2,350.7 per square mile (914.0/km²). The racial makeup of the borough was 97.88% White, 0.52% African American, 0.22% Native American, 0.19% Asian, 0.04% Pacific Islander, 0.30% from other races, and 0.85% from two or more races. Hispanic or Latino of any race were 1.64% of the population.

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