Söderhamn was granted town privileges by King Gustav II Adolf in 1620, establishing it as a key trading and industrial center, particularly for ironworks and the production of cannons. Its strategic location on the coast, with access to the Gulf of Bothnia, facilitated its development as a port town.
Throughout the 19th century, Söderhamn became a significant hub for the timber and sawmill industry, driven by the abundant forests of Hälsingland. The port served as a vital export point for sawn timber and other forest products. The town also benefited from the development of the railway network, connecting it to other parts of Sweden.
Today, Söderhamn remains an administrative and commercial center for its municipality. While the traditional heavy industries have largely diminished, the economy now includes a mix of public services, light manufacturing, and a growing emphasis on tourism, leveraging its coastal location and natural surroundings. Notable features include its grid-patterned town plan from its 17th-century founding, and its association with the Swedish Air Force, having previously hosted an air force wing (F 15 Söderhamn).