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John Gunter, the great-grandfather of American humorist Will Rogers, founded Guntersville. Gunter's own great-great-grandfather, of Welsh-English descent, had emigrated to the New World in 1644. Gunter was the rich owner of a salt mine at the beginning of the 19th century. Gunter made a deal to acquire more land to mine. He also agreed to hire servants from the Cherokee tribe. Gunter was to marry the chief of the tribe and give salt to the tribe as part of the agreement. Gunter was the name of a town that grew up near the mine. Every July, Guntersville hosts a festival to honor Will Rogers. It includes many activities that were interesting to Rogers.
Incorporated as "Gunter’s Landing" in 1848. It won the contest to be named county seat from Warrenton. In 1854, it officially changed its name from Guntersville to Guntersville.
In late 1864, the United States Navy started operating a fleet of gunboats along the Tennessee River. Confederate troops led a determined defense of the river at Guntersville. The USS General Grant tried to demolish the town as retaliation in January 1865.
Guntersville's economy revolved around cotton processing for much of the 20th Century, particularly with the Saratoga Victory Mill.