The Territory of Michigan was an organized incorporated territory of the United States that existed from June 30, 1805, until January 26, 1837, when the final extent of the territory was admitted to the Union as the State of Michigan. Detroit was the territorial capital.

Detroit, the largest city in the state of Michigan, was settled in 1701 by French colonists. It is the first European settlement above tidewater in North America. Founded as a New France fur trading post, it began to expand during the 19th century with American settlement around the Great Lakes. By 1920, based on the booming auto industry and immigration, it became a world-class industrial powerhouse and the fourth-largest city in the United States. It held that standing through the mid-20th century.

The first Europeans to settle in Detroit were French country traders and colonists from the New Orleans (the La Louisiane) colony. They were joined by traders from Montreal and Quebec; all had to contend with the powerful Five Nations of the League of the Iroquois, who took control of the southern shores of Lakes Erie and Huron through the Beaver Wars of the 17th century, during which they conquered or pushed out lesser tribes.

The region grew initially based on the lucrative inland and Great Lakes connected fur trade, based on continuing relations with influential Native American chiefs and interpreters. The Crown's administration of New France offered free land to colonists to attract families to the region of Detroit. The population grew steadily, but more slowly than in private venture-funded Thirteen Colonies based closer to the Atlantic coast. The French had a smaller population base and attracted fewer families. During the French and Indian War (1756-1763), the French reinforced and improved Fort Detroit (1701) along the Detroit River between 1758–1760. It was subject to repeated attacks by British and colonial forces, strengthened by their Indian allies.

Fort Detroit was surrendered to the British on November 29, 1760, after the fall of Quebec. Control of the area, and all French territory east of the Mississippi River, were formally transferred to Great Britain by the Treaty of Paris after the British defeated France in the Seven Years' War. The official census counted 2,000 people in Detroit in 1760, which dropped to 1,400 by 1773 due to the unattractiveness of living in the fledgling settlement. The city was in territory which the British restricted the colonists from settling in under Royal Proclamation of 1763. It was transferred to Quebec under the Quebec Act of 1774. By 1778 in a census taken during the American Revolution, population was up to 2,144. It was then the third-largest city in the Province of Quebec, after Montreal and Quebec.After 1773 a steady but growing trickle of European-American settlers took families across the barrier range, or through lower New York State into the Ohio Country—gradually spreading across present-day Ohio along the south shore of Lake Erie and around the bottom of Lake Huron. After the 1778 Sullivan Expedition broke the power of the Iroquois, the New York corridor joined the gaps of the Allegheny, Cumberland Narrows and Cumberland Gap as mountain passes, enabling settlers to pour west into the mid-west, even as the American Revolution wound down.

After the peace, a flood of settlers continued west, and Detroit reaped its share of population, established itself as a gateway to the west and the Great Lakes, and for a time outshone all other cities west of the mountains, save for New Orleans.

During the 19th century, Detroit grew into a thriving hub of commerce and industry. After a devastating fire in 1805, Augustus B. Woodward devised a street plan similar to Pierre Charles L'Enfant's design for Washington, D.C. Monumental avenues and traffic circles were planned to fan out in radial fashion from Campus Martius Park in the heart of the city. This was intended to ease traffic patterns and trees were planted along the boulevards and parks.The city expanded along Jefferson Avenue, with multiple manufacturing firms taking advantage of the transportation resources afforded by the river and a parallel rail line. In the late 19th century several Gilded Age mansions were built just east of Detroit's current downtown. Detroit was referred to by some as the Paris of the West for its architecture, and for Washington Boulevard, recently electrified by Thomas Edison. Throughout the 20th century, various skyscrapers were built centered on Detroit's downtown.

Following World War II, the auto industry boomed and suburban expansion took place. The Detroit metropolitan area developed as one of the larger geographic areas of the United States. Immigrants and migrants have contributed significantly to Detroit's economy and culture. Later in the century, industrial restructuring and trouble in the auto industry led to a dramatic decline in jobs and population. Since the 1990s, the city has gained increased revitalization. Many areas of the city are listed in the National Register of Historic Places and include National Historic Landmarks. The majority of the metropolitan population is located in the suburbs, and the city has had to adjust its role within the region.