Oakfield was first settled in 1831, and organized for tax purposes in 1866. On February 21, 1878, it was organized as a plantation from T5 R3 WELS, which was confirmed in 1895. It was incorporated as a town on February 24, 1897.
The main village is along the Mattawamkeag River, just south of Smyrna Mills near the junction of United States Route 2, Interstate 95, and the Bangor and Aroostook Railroad.