The earliest documented mention of the territory now called Stoneham dates to 1632 when, on February 7, Governor Winthrop and his party came upon this area. They found Spot Pond and ate their lunch on a place they called Cheese Rock, now known as Bear Hill. Stoneham is situated on the traditional territory of the Wampanoag people.

Stoneham was first settled by colonists in 1634 and was originally a part of Charlestown. The original colonists in the area were Whigs.^{[citation needed]} In 1678, there were six colonists with their families, all in the northeast part of the town, probably because of its proximity to the settlement in Reading (now Wakefield).

By 1725, the population of the area, called “Charlestown End”, had increased until there were 65 male inhabitants paying taxes; however, they were miles away from the settlement in Charlestown and could not conveniently reach its church or school. For this reason, Captain Benjamin Geary and 53 other residents of the area petitioned Charlestown to allow them to be separated. The town refused their petition at first, but on December 17, 1725, the General Court passed an act to establish the new township of Stoneham, separating it from Charlestown, and releasing its residents from the obligation to pay taxes to Charlestown, provided that within two years they would erect a suitable church and hire a minister and a schoolmaster.

The town’s first meeting-house was erected in 1726, and the first church was organized in 1729, with members being released from the congregations in Reading and Melrose to form it. In the same year, the town voted to raise £9 for the building of a school, and chose a committee to hire a schoolmaster. Stoneham remained a small town during the colonial era. Traces of its colonial history are still to be seen in the Spot Pond Archeological District of the Middlesex Fells Reservation. During the Industrial Revolution, Stoneham prospered as a major shoe-manufacturing center.

Stoneham is located at 42°28′48″N 71°5′54″W / 42.48000°N 71.09833°W / 42.48000; -71.09833 (42.480145, −71.098352).

According to the United States Census Bureau, the town has a total area of 6.7 square miles (17.4 km²), of which 6.2 square miles (15.9 km²) is land and 0.6 square miles (1.5 km²), or 8.36%, is water.

Stoneham has two exits off Interstate 93, Winchester Highlands and Montvale Avenue and one exit off Interstate 95, Route 28.

Stoneham borders the following cities or towns: Woburn, Winchester, Medford, Melrose, Wakefield, Reading and Malden.

At the 2000 census, there were 22,219 people, 9,050 households and 5,873 families residing in the town. The population density was 3,614.1 per square mile (1,394.9/km²). There were 9,289 housing units at an average density of 1,510.9 per square mile (583.2/km²). The racial makeup was 95.01% White, 2.61% Asian, 0.89% Black or African American, 0.05% Native American, 0.04% Pacific Islander, 0.59% from other races, and 0.90% from two or more races. Hispanic or Latino of any race were 1.79% of the population.

There were 9,050 households, of which 26.7% had children under the age of 18 living with them, 53.1% were married couples living together, 8.8% had a female householder with no husband present, and 35.1% were non-families. 30.1% of all households were made up of individuals, and 13.3% had someone living alone who was 65 years of age or older. The average household size was 2.42 and the average family size was 3.07.

21.0% of the population were under the age of 18, 5.9% from 18 to 24, 30.4% from 25 to 44, 24.3% from 45 to 64, and 18.5% who were 65 years of age or older. The median age was 41 years. For every 100 females, there were 89.0 males. For every 100 females age 18 and over, there were 85.6 males.

The median household income was $56,605 and the median family income was $71,334. Males had a median income of $46,797 and females $37,274. The per capita income was $27,599. About 3.0% of families and 4.1% of the population were below the poverty line, including 5.7% of those under age 18 and 5.5% of those age 65 or over.

Stoneham is part of the Massachusetts’s 5th congressional district and is represented by Katherine Clark. The United States Senators are Ed Markey and Elizabeth Warren. Part of the 31st Middlesex District, Mike Day represents the district in the Massachusetts House of Representatives. He replaced Jason Lewis who now represents Stoneham in the Massachusetts Senate for the 5th Middlesex Senate district.

Stoneham is inside the Route 128 belt that delineates the core of metropolitan Boston. Public transportation is available in or near Stoneham. The tri-community greenway path goes through Stoneham accessible to walkers/bikers. The Oak Grove subway station is 3.8 miles (6.1 km) from Stoneham Center, in Malden, and is the northern terminus of the MBTA’s Orange Line. Several commuter rail stations are in bordering communities of Melrose, Winchester, Wakefield, Reading, Medford, Woburn and Malden, each providing transportation to Boston’s North Station. The MBTA’s 132 bus route travels through Stoneham Center, offering transportation to the Orange Line at Oak Grove and Malden Station. And the MBTA’s 325 Express Bus to downtown Boston offers limited service. Interstate 93 passes through Stoneham, and Route 128/Interstate 95 passes just to the north of the town.