The area occupied as Beacon was originally settled as the Villages of Matteawan and Fishkill Landing in 1709, which were among the first communities in the state. Beacon incorporated as a city in 1913, amalgamating the two villages as well as a small portion of the Hamlet of Glenham from the Town of Fishkill.

The city served a variety of roles during the Revolutionary War. It manufactured war supplies, and served as a fort and signaling point. The city's name came from signal fires that were atop nearby Beacon Mountain. During the 1800s, the city became a factory town and was known as "The Hat Making Capital of the US" with nearly 50 hat factories operating at one time.

During the 1960s, urban renewal led to the destruction of some significant historic buildings. In the late 1970s, the Dutchess Ski area, which had been a large tourist attraction, was closed. Also in the 1970s, a decline in the economy shuttered most of the factories. This decline quickly became a severe and ongoing economic downturn that lasted from about 1970 to the late 1990s, during which almost 80 percent of the city's commercial business spaces and factories were vacant.

Starting in the late 1990s, with the opening of one of the world's largest contemporary art museums Dia: Beacon, Beacon began to an artistic and commercial rebirth. New development continues to enlarge the city. Currently, the two largest planned projects are a waterfront hotel and conference center, and "The Rivers and Estuaries Center" on Dennings Point.

Beacon is home to one of at least three operating "dummy-lights" in the United States, located at the intersection of Main and East Main Streets. It is a traffic signal on a pedestal which sits in the middle of an intersection, dating back to the 1920s. The other two are also located in New York State, in Canajoharie and Croton-on-Hudson.

• Hudson Valley Renegades - Class A Minor League Baseball Team for the Tampa Bay Rays. Team plays out of Dutchess Stadium located in neighboring Fishkill. (3-5 Minutes North of City)
• Hudson Valley Hawks- semi-professional basketball of the National Professional Basketball League team plays at Beacon High School

• Dia:Beacon - Contemporary Arts Museum. (In City)
• The Beacon Institute of Rivers and Estuaries - A major river and estuary research institute. (In City)

• Madam Brett Homestead — 50 Van Nydeck Avenue — the oldest building in Dutchess County, the home was owned and occupied by one family for seven generations and is on the National Register of Historic Places
• Lower Main Street Historic District — The first several blocks of Main Street east of its junction with South Avenue feature many small businesses located in vintage Italianate-style buildings.

Parks

• Memorial Park - Located in the center of the city and serves as the city's "Central Park". It is the city's primary park and many civic events are hosted there. (In city)
• Riverfront Park - The City's riverfront park, which is located on a peninsula jutting out into the Hudson River. A very active park that hosts numerous events. (In city)
• Green Street Park - A neighborhood park located in the Mountain Side Section of the city (In city)
• Hammond Field - A neighborhood park located in the River Side Section of the City that is primarily used for the city school district functions. Is the home of the "Beacon Bulldogs" Track and Football venues. (In city)
• South Ave Park - A housing project park for the Forrestal Heights Houses. Primarily used for the Beacon Hoops program, a city youth basketball program. (In city)
• Hudson Highlands State Park - The state park located behind and just south of the city. A very large state park that covers Mount Beacon. (1-3 minutes east and south of city)
• Forrestal Park - connected to Forrestal Elementary on Liberty Street this large playground with a basketball court is a long time favorite with locals. (in city)

Beacon's most major route is Interstate 84, which passes through the city's northside, providing a connection that is minutes to the Taconic State Parkway, New York State Thruway, and Stewart International Airport. The city also has the Newburgh-Beacon Bridge which carries the interstate over the Hudson River.

Although Interstate 84 is the city's most major route, NY Route 9D serves as the city's arterial. It starts at the city's northside where it intersects with Interstate 84 as the Interstate's Exit 11 and wraps around the city to its southside. The city also has New York State Route 52 Business that runs down the middle of the city and begins in the city's westside at NY Route 9D.

Commuter service to New York City is available via the MTA Beacon Train Station, served by Metro-North Railroad.

Beacon is also serviced weekdays by a commuter ferry, The Newburgh-Beacon Ferry, over the Hudson between both cities to help alleviate traffic to the Beacon Train Station from Orange County commuters. The ferry's route runs between Beacon City Harbor and Newburgh City Waterfront.

In nearby Wappingers Falls, the Dutchess County Airport services local commuter flights. The nearest major airport to Beacon is Stewart International Airport about 10 minutes away, in Newburgh.

Municipal bus service is provided by the county's Dutchess County LOOP Bus System, which provides commuter service throughout the county. Its main line from Beacon travels from Main & NY Route 9D up Route 9D to the Poughkeepsie Galleria and South Hills Mall in the Town Of Poughkeepsie.