John Hodgdon of New Hampshire, for whom the town is named, acquired a partial interest in the Westfield Academy Grant in 1802, and a full interest in the Groton Academy Grant in 1805, from which the town is made up. Hodgdon was incorporated on February 11, 1821, three years before the earliest recorded settler, Aaron Perly, appeared in 1824. Hodgdon annexed land from the Westfield Academy Grant in 1822, to complete its boundaries.
Hodgdon is located just south of Houlton along United States Route 1, where the South Branch of the Meduxnekeag River flows north to its eventual outlet in Canada.