The earliest settlements in the Luton area were at Round Green and Mixes Hill, where Paleolithic encampments (about 250,000 years old) have been found. Settlements re-appeared after the ice had retreated in the Mesolithic period around 8000 BC. Traces of these settlements have been found in the Leagrave area of the modern town. A particular concentration of Neolithic burials has been found at Galley Hill, but the most prominent Neolithic structure is Waulud's Bank which dates from around 3000 BC. From the Neolithic onwards, the area seems to have been populated, but without any single large settlement.
In 1645, during the English Civil War, royalists entered the town and demanded money and goods. Parliamentary forces arrived and during the fighting four royalist soldiers were killed and a further twenty-two were captured. A second skirmish occurred three years later in 1648 when a royalist army passed through Luton. A number of royalists were attacked by parliamentary soldiers at an inn on the corner of the current Bridge Street. Most of the royalists escaped but nine were killed.
In World War II, the Vauxhall Factory in the town built Churchill tanks as part of the war effort. Despite heavy camouflage, the factory made Luton a target for the Luftwaffe and the town suffered a number of air raids. 107 died and there was extensive damage to the town with over 1,500 homes being damaged or destroyed. Other industry in the town, such as SKF, which produced ball bearings, made a vital contribution to the war effort. Although a bomb landed at the SKF Factory, no major damage was caused.
The pre-war years, even at the turn of the 1930s when a Great Depression saw unemployment reach record levels nationally, were something of an economic boom for Luton, as new industries grew and prospered. New private and council housing was built in the 1920s and 1930s, with Luton growing as a town to incorporate nearby villages Leagrave, Limbury and Stopsley between 1928 and 1933.
In 2000, Vauxhall announced the end of car production in Luton; the plant closed in March 2002. At its peak it had employed in excess of 30,000 people. Vauxhall's headquarters remain in the town, as does its van and light commercial vehicle factory.