Montone is a walled medieval village with a small industrial and housing estate surrounding the walled town center. The town is the origin of the Fortebracci condottieri family, whose most famous member was Braccio da Montone.

Believed to be of Medieval origins, Montone appears in the tenth century as a fiefdom of the Margravate of Colle and subsequently of the Del Monte family. By 1121 Montone, now under the direct control of Perugia, was authorized to be self-governing under its own statutes and legal officers.

In 1414 it was given to Braccio da Montone. His family held it until the early 16th century, when the Vitelli acquired it. Later in the century it was annexed to the Papal States.

On 10 July 1944 in the vicinity of Morlupo, 2 km north of Montone, Naik Yeshwant Ghadge, 3/5 Mahratta, 10th Indian Division earned posthumously the Victoria Cross, the highest British military award, for bravery under enemy fire.

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