Sherman was settled in 1832, and incorporated on January 28, 1862 from Golden Ridge Plantation. In 1870, it annexed land from Silver Ridge Plantation, then annexed additional land from Crystal Plantation in 1881, forming its current boundaries.
Sherman and Sherman Mills are both villages within the greater township of Sherman. Sherman Mills, to the east of Sherman, is the larger of the two.
Traditionally, potatoes and strawberries have been major components of Sherman's agricultural economy.