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In 1854, a survey of the Chesapeake Bay revealed that the area was a lucrative fishing location, with extensive oyster beds around Somers Cove. In 1866, John W. Crisfield, a Princess Anne attorney, was instrumental in bringing the Eastern Shore Railroad, a branch of the Pennsylvania Railroad system, to the Somers Cove seaport. The Crisfield Secondary Branch of the railroad opened on November 6 of that year. The town was formally incorporated in 1872 as a city, and renamed Crisfield in honor of the attorney's efforts. The railroad bolstered the economy of the new city and Crisfield prospered greatly, as did other towns and settlements along its route, such as Marion Station to the north. Seafood was soon being shipped all over the United States, and Crisfield became known as the "Seafood Capital of the World", a nickname still carried by the city. An industrial boom followed. By 1904, the City of Crisfield was the second largest city in Maryland, after Baltimore, with the population topping off at about 25,000 at that time. The city's seafood industry attracted new residents from as far away as New England and the Midwestern United States. The city also had a baseball team before long: the Crisfield Crabbers, who played in the Eastern Shore Baseball League. The success of the city's seafood industry filled the city with train soot and large quantities of oyster shells. Around the turn of the 20th century, businessmen would buy plots of land at the southwest edge of the city and discard the shells and soot into the salt marshes. This shell midden eventually grew to become a peninsula roughly a half mile long. Downtown Crisfield was built atop this new land, and this leads to the common statement that Crisfield was so prosperous that it is "literally built on top of oyster shells". James Reed, an African American native to North Carolina was lynched by a mob of whites in Crisfield, Maryland on July 28, 1907. He was thought to have killed the local police chief. The city experienced several fires, the most well known of which is known as the Great Fire of 1928. It began on March 29 at the Crisfield Opera House and quickly spread to the downtown area, completely destroying it and causing over $1 million in damages. Crisfield's prosperity began to decline along with the health of the Chesapeake Bay. Oyster populations declined to the point where the watermen could no longer fully support themselves on their daily catches. Some businesses began to move out of Crisfield, while others shut down. On April 1, 1976, the railroad that had brought prosperity to Crisfield was abandoned as Conrail was established. However, Maryland Route 413, a new, straight vehicular highway was built before the railroad was abandoned, along the railroad right of way. As large businesses in the United States grew, they passed the shrinking Crisfield by until the late 20th century. Fast food restaurants began to slowly find business in the city, starting in the late 1990s, alongside the many seafood restaurants already in town. A large supermarket had been in city plans for a decade, though it wasn't until April 2010 that it opened for business. Crisfield has also been a target for large waterfront properties, with several large condominiums being built in the mid 2000s in the downtown area, along with other places flanking Crisfield's harbors. A "strategic revitalization plan" has been in the works since 2006 to address future growing needs and beautification of the city. Crisfield is known for its seafood, particularly Atlantic blue crab, and it abounds with restaurants, seafood packing houses, and seafood distribution companies. Several seafood restaurants across the country carry the city's name. In 2012, Hurricane Sandy affected the town as many businesses and homes were flooded. The Crisfield Armory, Crisfield Historic District, Cullen Homestead Historic District, Make Peace, Nelson Homestead, Capt. Leonard Tawes House, and Ward Brothers' House and Shop are listed on the National Register of Historic Places.

Crisfield is a very compact city, with little vacant land. According to the United States Census Bureau, the city has a total area of 3.06 square miles (8 km2), of which 1.62 square miles (4 km2) (53.0%) is land and 1.44 square miles (4 km2) (47.0%) is water. As one of the southern points on the Delmarva Peninsula and one very close to the Chesapeake Bay, the city is extremely flat, with the elevation never rising above 3 feet (1 m). The city of Crisfield is surrounded by salt marshes and was built on a floodplain. The downtown is especially prone to flooding during large storms and hurricanes. On October 29, 2012, Hurricane Sandy's storm surge left most of the city underwater. Ongoing local concerns about flooding and the impact of sea level rise were featured in The Washington Post in October 2013. Crisfield is the southernmost city in the state of Maryland; the point farthest south is geographically located at Ape Hole. Regardless of this, Southern Maryland is an official region of the state not associated with the Eastern Shore, and areas of Saint Mary's County are sometimes claimed to be the southernmost point of the state.

Crisfield's location on the Atlantic Coastal Plain in Maryland gives it a humid subtropical climate, with hot, humid summers and cool to mild winters. Its proximity to water, as well as a common trend on the Delmarva Peninsula, means that the city does not see much snowfall in the winters; meaning Crisfield as well as Inner Harbor Baltimore, and the border of Assateague Island on the Atlantic Barrier Island are the only hardiness zone 8a examples in Maryland.

Crisfield is part of the Salisbury Ocean Pines CSA, a combined statistical area (CSA) which includes the Salisbury metropolitan area (Somerset and Wicomico counties) and the Ocean Pines micropolitan area (Worcester County), which had a combined population of 155,934 at the 2000 census. Salisbury is the principal city of this CSA.

As of the census of 2010, there were 2,726 people, 1,113 households, and 667 families residing in the city. The population density was There were 1,531 housing units at an average density of The racial makeup of the city was 59.0% White, 36.4% African American, 0.6% Native American, 0.5% Asian, 1.3% from other races, and 2.3% from two or more races. Hispanic or Latino of any race were 3.7% of the population. There were 1,113 households, of which 33.6% had children under the age of 18 living with them, 30.1% were married couples living together, 25.8% had a female householder with no husband present, 4.0% had a male householder with no wife present, and 40.1% were non families. 35.4% of all households were made up of individuals, and 15.4% had someone living alone who was 65 years of age or older. The average household size was 2.38 and the average family size was 3.06. The median age in the city was 38.4 years. 27.8% of residents were under the age of 18; 8.3% were between the ages of 18 and 24; 21.5% were from 25 to 44; 24.6% were from 45 to 64; and 17.7% were 65 years of age or older. The gender makeup of the city was 44.0% male and 56.0% female.

As of the census Since then, crime rates have been on a steady decline, generally halving between 2006 and 2008. The most prevalent crime in the city is property crime, down from a high of 180 in 2006

Crisfield's economy is centered largely around retail, health care, and automotive. Seafood is also an important part of Crisfield's economy, just as it has been for most of its existence, with several packing plants existing within the city. In 1997, the company CrabPlace. com began selling seafood online, caught by local watermen. The largest employer inside Crisfield's limits is the McCready Memorial Hospital. The second largest employer in the city is the Sherwin Williams plant (formerly Rubberset company), which manufactures paintbrushes and roller covers. In the past, the economy was centered on the watermen and seafood. About 150 seafood processing and packing plants were located within the city in its heyday. As the health of the Chesapeake Bay began to decline, so did the numbers for the blue crab catch, which have fallen by 70% since the 1990s.

Due to Crisfield being the main access point to Smith Island, it is an area with many speakers of the unique Smith Island accent. It also serves Smith Island cake, the Maryland state dessert, in many of its restaurants.

Since 1986, Crisfield has hosted the Scorchy Tawes Pro Am Fishing Tournament. The 3 day tournament features cash prizes for different fishing categories, and nightly block parties at Side Street Restaurant. The annual J. Millard Tawes Crab and Clam Bake takes place on the third Wednesday of each July. The event, which began in 1976, is named for the former governor born in Crisfield, and attracts many politicians from across the state each year. Crisfield's largest event is the annual National Hard Crab Derby & Fair, held every Labor Day weekend, which began in 1947. Major highlights of the Crab Derby include a parade through Main Street, the Little Miss, Little Mr. and Miss Crustacean Pageants, the Boat Docking Contest (which began in 1971), the Crab Picking contest, and the Crab Bowl. The Crab Bowl turns the Somers Cove Marina into fairgrounds with rides, concerts, vendor stands, and fireworks.

Crisfield has several museums: the J. Millard Tawes Historical Museum, the Ward Brothers Workshop, and the J. Millard Tawes Library.

Crisfield is said to have a mayor–council–manager government. Administration is handled by the City Manager, who is appointed by the mayor and city council. The mayor is elected by the citizens of Crisfield, and the council members are as well. All serve four year terms.

The city once had a minor league baseball team: the Crisfield Crabbers, who played in now defunct Eastern Shore Baseball League. Several little league baseball and high school sports teams remain in the city. Wellington Beach and Park was open with life guards and concession stand in the 1980s, but closed. However, through Program Open Space, Crisfield received funding to build and reopen it. Crisfield's public Wellington Beach and Park reopened in early 2012 as Brick Kiln Beach. However, after Hurricane Sandy hit later that year, the beach required major reconstruction. The beach was renamed and reopened to the public on June 2, 2013 at 1:00 PM. The park has a play area, a gazebo, and bathrooms during the summer months. It also is a popular crabbing spot. Nearby Janes Island State Park is a large marshy island made of almost completely undeveloped land, and is colonized by various birds and marine life. It offers fishing, swimming beaches, picnicking, camping, a playground, and has about thirty miles of water trails which can be accessed by canoe. The beaches allow swimming as well.

Crisfield's two public schools are part of the Somerset County Public Schools district, which is headquartered in Westover. Carter G. Woodson Elementary School − This school is located on South Somerset Avenue and currently serves grades K−5. This was changed from 2004, where it was the middle school, serving grades 6−8; school consolidation in the county changed the school and gave it a renovation. Much earlier than that, the school was the Crisfield Colored High School. Crisfield Academy and High School − Originally known as just Crisfield High School, this building is located on North Somerset Avenue between the intersections of Potomac Street and Mercury Drive, and serves grades 8−12. Before consolidation, it handled grades 9−12. The school is the first educational facility built beyond the original Crisfield Academy, and has existed in four different buildings on three different sites, all located close to or on Somerset Avenue.

As Crisfield's heritage is on the water, it has many points of access to the Tangier Sound and Chesapeake Bay. Crisfield has two public docks. The city dock is located at the end of Main Street (MD 413). The city dock is the landing for mail ships, large commercial ships, and passenger ferries to Smith Island and Reedville, Virginia via Tangier Island. The city dock pavilion is a popular site for public events. The county dock, located one block west at the end of Broad Street, is largely used for freight, and was rehabilitated in the mid 2000s. The Little Boat Harbor, located on Brick Kiln Road is utilized mostly by smaller workboats. Somers Cove Marina, a large marina built in Crisfield in the 1960s, is currently owned by the State of Maryland. The marina hosts many of the city's large events, such as the National Hard Crab Derby. Throughout Crisfield's history, there has been discussion of a high speed ferry link between Crisfield and the Western Shore, with large vessels that can accommodate large numbers of vehicles and tractor trailers. The proposed site for a Western Shore landing has ranged from Point Lookout State Park in Maryland to Reedville in Northumberland County, Virginia. The most recent proposal came in the 2000s; however, it was deemed that a ferry would not be economically feasible. Money earmarked for the ferry service was released to the city for an upgrade of the city dock. Major streets not maintained by the state are Somerset Avenue, which is located at the northern edge of town and travels south, paralleling the eastern city boundary and fronted mostly by homes; all of the public schools in the city are located down this corridor. There is also Main Street, which provides access to City Hall, the post office, police department, the library, and many of the businesses in the city, and also intersects Somerset Avenue at the only stoplight in the city. Main Street merges with Maryland Route 413 near the Crisfield Fire Department, becoming a four lane boulevard. Broadway Avenue, running parallel to Main Street one block south, was once a major business center in the city as well, fronted by many businesses and churches and passed directly through the city's marina; however, it no longer reaches the marina, and a large number of the stores and warehouses along it have closed.

As part of expansion of bicycle infrastructure across the state of Maryland, MD 413 inside the city limits received bicycle lanes for almost its full length in 2017. There is also a proposal to convert the abandoned Crisfield Secondary Branch alongside MD 413 to a Crisfield–Westover Rail Trail. Part of this plan included the bike lanes already installed in Crisfield.

The two bus routes serving Crisfield, Route 706 North and Route 706 South, are operated by Shore Transit, which provides the commuter bus service for the lower Eastern Shore. Both routes travel along Somerset Avenue and MD 413, and Cove Street, and stop at McCready Memorial Hospital. All buses provide access to the Princess Anne transfer hub with limited service to Salisbury; thus riders can get access to other points on the Eastern Shore.

The Crisfield Municipal Airport is located near Hopewell. The main access road to the airport is on Plantation Road in Hopewell, south of the MD 667 intersection there; from Crisfield it is accessible via Jacksonville Road. The airport has been a recent target for expansion.

Crisfield possesses three water towers and a public sewer system; both provide municipal services as far north as Plantation Road in Hopewell. Crisfield is the hometown of most of the cast and crew members and is called "Hometown, Maryland" in the movie. The film is currently available on Amazon and YouTube.