Danilovgrad is the largest settlement in the Bjelopavlić Plain, which is named after the local tribe Bjelopavlići. This tribe is first mentioned in a document from August 4, 1411, which is kept in the Historical Archive of Dubrovnik.

Danilovgrad is first mentioned during the beginning of its construction in 1869. The city truly came to life the following year, in 1870, when the Prince Mirko Bridge was opened, connecting both banks of the Zeta River. Exactly 150 years have passed since then.

It was founded with the aim of becoming the capital of the Principality of Montenegro. The foundations for this planned settlement were laid by Prince Nikola Petrović-Njegoš in 1870. The city was named after Nikola's predecessor, Prince Danilo Petrović-Njegoš. However, after the liberation of Podgorica and Nikšić in the Montenegrin-Turkish War, the importance of Danilovgrad declined.

Danilovgrad is the first planned and established city in Montenegro. A young engineer, Dragiša Milutinović, the son of Simo Milutinović Sarajlija, was engaged to create the urban plan for the new city in 1869. The plan included the following public buildings: the New Palace of His Holiness, the Senate, the Prison, the School, the Church, and the Tower for the defense of the bridge, while in 1868 work began on constructing the bridge over the Zeta River.

Danilovgrad is home to an Art Colony, which is the first and only institution of its kind in Montenegro. The courtyard of the colony is adorned with numerous sculptural works, and Danilovgrad is one of the few cities in Montenegro with an open-air gallery.

The people of Danilovgrad are particularly proud of the fact that their high school is considered one of the best in the country, as evidenced by the national "Oktoih" award it received in 2015. The high school is also attended by a large number of students from Podgorica.

There are 48 churches in the municipality, which have been built and renovated over various periods. Two particularly important cultural, historical, and religious monuments stand out – Ostrog Monastery and Ždrebaonik Monastery.

In addition to the famous monasteries, the mountainous part of Danilovgrad is significant for tourism development, as it is rich in forests. These areas are suitable for tourism, especially around Vukotica, Studeno, Ponikvica, Borovi Do, Ivanj Uba, and Topolovo.

The hunting area of Danilovgrad is a special economic potential. The hunting grounds cover an area of 48,500 hectares, and the most significant species of game include the brown bear, roe deer, wild goat, wolf, hare, fox, badger, squirrel, dormouse, pheasant, and wild ducks.

Danilovgrad is home to over 27 caves, the most famous of which are Studendula and Bojanova Cave on Garč, Vilina Cave on Lisac, Pišina Cave in Brijestovo, Babljača in Martinići, Baćarica and Tisovača in Vinići, Dimiguza near Međeđa, Kljunača, Javorača and Hajdučka Cave in the Pavkovići and Vražegrmci areas, and Patalina in Pješivci.