Archaeological investigations have found evidence for pre-historic activity in the Shepton Mallet area, with Neolithic artefacts being found, as well as evidence of bronze age burials and iron age roundhouses.^[3]

Shepton Mallet is situated approximately half-way between the Roman towns of Bath and Ilchester on the Fosse Way, and, although there are no visible remains (apart from the line of the roman road itself), there is archaeological evidence for both early military, and later civilian, settlement lasting into the 5th century. Pottery kilns identified on the site of the Anglo-Bavarian Brewery suggest military activity in the 1st and 2nd centuries, and several hoards of roman coins ranging from the 1st to 4th centuries have been found, as well as a large number of fibula brooches, potsherds and other artefacts.^[3]

In 1988 a lead coffin was discovered and led archaeologists to undertake more extensive excavations at a site adjacent to the Fosse Way in the 1990s. They were able to identify a number of buildings including wooden and stone houses and workshops, streets, industrial areas, cemeteries, and a well. These indicated occupation from the late 1st or early 2nd century to the late 4th or early 5th century. Items of jewelry, tools and coins were also found.^[3]

A key find was a Chi-Rho amulet, thought to be from the 5th century, and so held to be among the earliest evidence of Christianity in England.^[4] This prompted the then Archbishop of Canterbury, George Carey, to wear a copy. The amulet is now in the Somerset County Museum, however in 2008 analysis at Liverpool University using inductively coupled plasma atomic emission spectroscopy demonstrated that the amulet was a hoax, as the silver dated to the 19th century.^{[5][6][7][8][9]}

There is a small amount of evidence of saxon settlement, including some saxon stonework in the parish church, and an 8th century charter which granted the area in which Shepton Mallet is now situated to Glastonbury Abbey. The Domesday Book of 1086 lists a settlement known as Sceaptun, meaning 'the sheep enclosure' from the Old English scoep and tun. The second part of the name derives from that of the Malet family who took a lease from the Abbey around 1100. Charters of 1235, 1260 and 1318 granting the right to hold markets and fairs indicate that the town was developing and prospering at this time.^[3][10]

When Glastonbury Abbey was dissolved by Henry VIII, the land reverted to the Crown and was granted to the Duchy of Cornwall. In the 17th and 18th centuries the wool industry continued to thrive, and was joined by silk manufacture, both powered by the waters of the River Sheppey.

In 1625, a House of Correction was establish in Shepton Mallet and, today, HMP Shepton Mallet is England's oldest prison still in use.

During the Monmouth Rebellion in 1685, the Duke of Monmouth passed through Shepton Mallet, staying in Longbridge House ^[11] on Cowl Street on the night of 23 June, before setting out for Bristol the following day. Many rebels joined the cause, but Monmouth had to return to Shepton after failing to take Bath or Bristol. Following the Bloody Assizes, a number of rebels were hanged from the market cross.^[12]

In the 19th and 20th centuries, brewing became one of the town's major industries, and the Anglo-Bavarian Brewery,^[13] still a local landmark, became the first in England to brew lager. The town, which is also home to Babycham, is still an important centre for cider production.

Geography