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Tonypandy is situated in the Rhondda Fawr Valley of Rhondda Cynon Taf, within the historic county of Glamorgan in south Wales.

It is in a steep, narrow valley carved by the River Rhondda Fawr, surrounded by rising hills that define its settlement pattern.

Nearby and abutting communities include Gelli, Trealaw, Clydach Vale, and Llwynpia, all part of the larger Rhondda urban area. The wider Tonypandy built-up area holds about 17,000 residents, although the town proper has only around 3,500.

Archaeological evidence shows that the Tonypandy area was inhabited long before the modern town emerged. The most significant prehistoric site is Myndd y Gelli, north-west of the present town. On its slopes lies Hen Dre'r Gelli, an Iron Age settlement, accompanied by several Bronze Age cairns, indicating sustained prehistoric activity in the valley.

In the Middle Ages, Tonypandy hosted one of only two permanent fortifications in the Rhondda Valley: Ynysgrug, a small motte-and-bailey earthwork built in the 12th or early 13th century. Although most of it was destroyed by later railway construction, the site illustrates the strategic importance of the valley long before industrialisation.

The name Tonypandy derives from Welsh elements meaning "the meadow of the fulling mill." The fulling mill - pandy was the nucleus around which the settlement formed. Harri David founded the mill in 1738, and David Martin took it over later in the 18th century. Its purpose was to bleach and finish woolen cloth produced by local farms.

In the early 19th century, the mill remained a focal point for local agricultural communities. The 1844 tithe map shows cottages, a shop, and farm holdings clustered around the mill and Pandy Bridge, forming the earliest recognisable settlement pattern.

The arrival of the Taff Vale Railway in the mid-19th century marked a turning point. Cheaper textiles from northern England undercut local production, leading to the mill's decline and eventual closure. Yet, the transportation link laid the groundwork for Tonypandy's transformation into a coal-driven industrial town.

Tonypandy's industrial era began with the sinking of nearby collieries: Gellifaelog Colliery (1845), Adare/Pandy Colliery (1879), and Nantgwyn Colliery (1892). These mines fueled rapid population growth and reshaped the landscape.

By 1875, Tonypandy had developed into a ribbon settlement along De Winton and Dunraven Streets, with cottages, inns, chapels, and small shops lining the valley road. Later expansion introduced a grid pattern layout, particularly south-west of Dunraven Street and north of the railway, reflecting speculative housing ventures.

Tonypandy became a commercial and cultural centre for the Rhondda, hosting the first free library in the valley, multiple theatres, and the substantial Methodist Central Hall (1923), which seated 1,000 people and served as a major civic landmark.

The town is widely known for the 1910 Tonypandy Riots, a major flashpoint in British labor history. During a prolonged strike at the Cambrian Collieries, violent clashes erupted between miners and police, leading to property damage, hundreds of injuries, and the controversial deployment of military forces authorised by Home Secretary Winston Churchill. The riots highlighted deep tensions between labor and capital in the coal industry and contributed to national reforms, including the push for a minimum wage for miners by 1912.

Tonypandy's history began with prehistoric settlement along the surrounding hills, evolved through medieval fortification, and crystallised around an 18th-century fulling mill that gave the town its name. The arrival of railways and coal mining transformed it into a dense industrial community that later experienced labor conflict and cultural vibrancy. Today, the town is a post-industrial service centre within the Rhondda, shaped by its geography, its agricultural roots, and its role in the history of the south Wales coalfield.

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