The town of Friendsville is Maryland's western-most municipality, situated in the corner of the state adjacent to the borders of Pennsylvania and West Virginia. Friendsville's first known white settlers were John and Mary Friend who came to the area in the 1760s and gained permission from the Shawnee Indians to build a log cabin near their encampment along the Youghiogheny River. The "Yough," as the river is known locally, flows northward from Friendsville into Pennsylvania, which accounts for the Shawnee name which translates as "waters that flow in a contrary direction."

By the early 1900s, Friendsville was a thriving community with a number of homes, hotels, stores, and an opera house. The local economy was supported by a booming timber and coal-mining industry and by a railroad that serviced the area.

During World War II, a flood-control dam was constructed on the river down-stream from the town, leading to abandonment of the railroad. Many of the mines closed, and the logging industry became stagnant, resulting in fewer and fewer jobs for local residents.

Friendsville today has become synonymous with white-water rafting because of the town's proximity to the Youghiogheny River, which boasts some of the best rafting and kayaking east of the Mississippi. The boom in that sport and the popularity of the area for vacationers and fishermen has been most beneficial to Friendsville. The healthy economy supports an active community that strives in many ways to maintain a supportive and congenial environment for its residents. Friendsville Community Park provides a variety of recreational and cultural opportunities; a community and senior citizens center meets a diversity of residents' needs; and the Friend's Museum provides a genealogical library and a glimpse of the town's past. The museum also serves as the headquarters of the Friend Family Association of America.

Friendsville takes pride in its motto "The friendliest little town in Maryland."