It was formerly the seat of Faaborg municipality. The seat of the new municipality is Ringe. Both municipalities use(d) Faaborg's medieval coat of arms.

Faaborg is first mentioned in a document, located in the French National Archives in Paris, dated June 25, 1229. It is a deed of gift that gives Faaborg as a morning present to the daughter in law of Valdemar II. It is mentioned as a castle, so it must have existed before this date. However, this date has been used as the birth date of Faaborg and thus the city celebrated its 775 birthday in 2004.

Nearby, Egeskov Castle, Hvedholm Castle and Horne Church are located.

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