Colonel Samuel Miles, a Philadelphia land speculator, acquired substantial land holdings in Brush Valley and laid out a road that became a major route for travelers and local families in the 1770s and 1780s. Madisonburg was named to honor James Madison. It became an agricultural center along the new road and at the intersection of another road leading into Little Nittany Valley. A stone house built in 1833 by Simon Pickle at this intersection served as a post office, general store, and tavern to accommodate travelers. Today that house is privately-owned.

Madisonburg is a quiet community along Route 192 with a total area of .1 square miles and a population of under 200 inhabitants.