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Stephens City ('/s//t//iː//v//ə//n//z/ STEEvənz) is an incorporated town in the southern part of Frederick County, Virginia, United States, with a population of 2,016 at the time of the 2020 census, and an estimated population of 2,096 in 2022.

The area surrounding present day Stephens City was originally inhabited for 12,000 years by Native Americans, including the Susquehannock, Lenape, Tuscarora, Catawba, Iroquois, and Cherokee. One of the largest groups, the Shawnee, had already left the area when European settlement began. The tribes that did remain were initially peaceful towards the settlers, but relations soured after resources and land were confiscated. The ancestors of Thomas Fairfax, 6th Lord Fairfax of Cameron, received a land grant from King Charles II of England which included a large portion of modern Virginia. After discovering one of the grant's boundaries, the Potomac River, extended into the Alleghany Mountains and that others had also received grants west of the Blue Ridge Mountains, a compromise was reached whereby these grant holders would keep their land. One of these grants, named the King's Grants, was acquired in 1730 by John and Isaac Vanmeter from Governor Sir William Gooch, 1st Baronet. The Vanmeter grant was purchased by Baron Jost Hite the following year. Hite, a wealthy Protestant immigrant from Strasburg, Germany, had settled in Kensington, New York, before moving to Montgomery County, Pennsylvania. In 1732, Hite, his three sons in law, and a dozen other German and Scotch Irish families moved south and settled along Opequon Creek, the present site of the John Hite House. One of the men who had traveled with Hite, Peter Stephens, received a land grant of 674 acres (273 ha) and settled 2 miles (3.2 km) further south where he built a log house. The oldest Stephens child, Ludwig (Lewis), was by that time an adult and operated a tavern at the family homestead. In the 1740s and 1750s, Lewis acquired land from Hite, Fairfax, and Peter Rittenhouse. On September 21, 1758, Lewis petitioned the colonial government of Virginia in Williamsburg for a town charter. The Virginia General Assembly approved the charter for the town of "Stephensburgh" on October 12, 1758, making it the second oldest town in Frederick County. By 1830, the town's population had reached 800. In 1853, free African Americans began a settlement about a mile east of town near the intersection of present day Route 277 and Double Church Road which became known as "Crossroads" or "Freetown", which lasted until after the Civil War. After the January 1, 1863, Emancipation Proclamation, some of the newly freed slaves worked for Union commanders and many of the already free African Americans left the area. When the Civil War broke out in 1861, the majority of Newtown's young men joined Confederate forces. During the war, the town was "between the lines", nominally controlled by the Union but with much Confederate partisan activity. On May 24, 1862, Stonewall Jackson's Confederate forces advanced northward on the Valley Pike and attacked Union troops, who were retreating at the time. At Newtown, General George Henry Gordon of the Second Massachusetts Infantry ordered his Federal troops to make a stand. The skirmishing involved heavy artillery fire, but Gordon's men retreated without loss of the important supply wagons. When Gordon left the town to Jackson's forces, both sides claimed a victory. Throughout the day control of the town changed hands six times between Union and Confederate forces. in which they swore that they had not voluntarily provided aid to the Confederacy. The government required the oath, effectively excluding ex Confederates from the political arena during the Reconstruction era.

In the early 1900s limestone was discovered on the western side of Stephens City. Soon after a lime plant built by the M. J. Grove Lime Company began operations, near the Stephens City Station railway depot and the Stephens City Milling Company. This industrial area, nicknamed "Mudville", would later expand to include commercial businesses. The 20th century brought improvements to energy and domestic systems: electrical service was introduced in 1915; and in 1941, just before World War II, the town installed a water system. The town surveyed its older buildings to establish architectural significance and to determine those that contributed to the town's historic center. The Newtown–Stephensburg Historic District was listed on the National Register of Historic Places in August 1992. Among the contributing properties to the historic district are numerous 18th century buildings, 19th and early 20th century homes and businesses, cemeteries, churches, and a school complex. The United States District Court for the Western District of Virginia ordered Frederick County schools desegregated (including those serving Stephens City) in Brown v. County School Board (1964). In 1994, Virgil E. Watson was elected as the first African American to serve on the Stephens City Town Council. Watson served for one term, from 1994 until 1998. It was one of a record 40 tornadoes to hit northern Virginia that day. Renovation of the town's historic center has attracted heritage tourism. Anticipating more growth, the town annexed of unincorporated Frederick County in 2005, another in 2006, and in 2007. In 2022 voters overwhelmingly approved a bond measure to rehabilitate and renovate the town's former school complex into a new town hall and community space.

The town is located between the Blue Ridge Mountains and the Appalachian Mountains in the northern Shenandoah Valley of Virginia in close proximity to West Virginia, Maryland, and Pennsylvania. Washington, D. C., is approximately to the east and the center of Baltimore is to the northeast by highway. According to the U. S. Census Bureau, the town has an area of , of which , or 1.21%, are water.

The economy of Stephens City features several industries. According to the 2021 American Community Survey, the industries in the town (by percentage of employed civilian population 16 years and over) were educational services, health care and social assistance with 28.2%, retail trade with 13.5%, manufacturing with 11.4%, professional, scientific, management, administrative and waste management services at 11.3%, arts, entertainment, recreation, accommodation and food services with 9.1%, public administration with 8.1%, other services excluding public administration with 4.5%, construction with 4.4%, finance, insurance, real estate and rental and leasing with 3.1%, transportation, warehousing, and utilities with 2.2%, wholesale trade with 1.9%, agriculture, forestry, fishing, hunting, and mining with 1.4%, and information with 1%. As of 2021, the employment rate was 76.3%. At Newtown Commons, residents can hold outdoor events such as picnics, fundraisers or small concerts. The Bel Air Street Park is a playground for children with standard swingsets and other activities. Sherando Park is also home of the Virginia Tech Memorial Garden, planted in memory of the Virginia Tech shooting, which took place approximately from the park. It has "a winding sidewalk shaped in the college's trademark 'VT'" and "a flagpole surrounded by 32 Hokie Stones", one for each of the 32 victims of the shooting. The Memorial Garden was dedicated and opened on April 16, 2009, the second anniversary of the shooting. It is one of ten drive ins in the state of Virginia. The theatre converted to all digital in 2013.

Stephens City plays host to the annual "Newtown Heritage Festival" held each Memorial Day weekend. The three day event features many crafts, carnival style food, a tractor wagon ride through town, local music at Newtown Commons, a parade on Saturday and fireworks. Stephens City is one of the towns along the Route 11 Yard Crawl. A yearly event held during the second Saturday in August, the Yard Crawl is an almost 50 mile long (80 km) yard sale that stretches from Stephens City's Newtown Commons south along U. S. Route 11 to New Market, Virginia. The event is sponsored by the Shenandoah County Chamber Advisory Group, five chambers of commerce, and the town of Stephens City. Two other black churches in Stephens City are a nondenominational congregation which meets in a former Baptist church built in 1891, and a Full Gospel congregation which meets in a former Free Will Baptist church, also built in 1891. Just south of the town limits is a Mennonite church. A Roman Catholic parish affiliated with the Diocese of Arlington and a Jewish synagogue, which each function as centers for their respective members in the entire Shenandoah Valley, are located approximately north in Winchester.

The town is led by a Mayor, currently Mike Diaz, who was elected in 2018 and re elected in 2022. The Town Manager is Mike Majher, who also serves as the Town Planner. Other administrative staff working for the town government include the Town Clerk (Kelly Thatcher) and Town Treasurer (Steve Rickards). The town is served by Police Chief William "Bill" Copp and Fire & EMS Chief Timothy J. Vaught, both of whom are on the town's Public Safety Committee. The town is served by five other committees: the Administrative Committee, the Personnel Committee, the Water and Sewer Committee, the Public Works Committee, and the Finance Committee. The members of those five committees are composed of Town Council members. The town's Historic Preservation Commission reviews proposals for new buildings and alterations to existing structures. Stephens City is represented by Chris Collins (Republican) in the Virginia House of Delegates 29th District. Jill Holtzman Vogel (Republican) represents the town in the Virginia Senate's 27th District. Tim Kaine (Democrat) and Mark Warner (Democrat) represent the town in the United States Senate.

Frederick County Public Schools operate the public schools that serve Stephens City, although none are located within Stephens City proper; public schools that serve Stephens City are within a few miles of the town limits. The town and surrounding area are served by Bass Hoover Elementary School, Robert E. Aylor Middle School (in nearby White Post), and Sherando High School. The latter was named for one of the historic Iroquoian speaking tribes encountered by early European settlers to the Shenandoah Valley. Eukarya Christian Academy and Legacy Christian Academy are two private schools located outside the town's corporate limits. The two local options for residents wishing to obtain degrees in higher education are Shenandoah University in Winchester and Laurel Ridge Community College in Middletown.

From 1881 to 1883, Stephens City had a community newspaper, the Stephens City Star. During its short history, it was led by three editors: Charles E. Painter, S. M. Stickley, and Ben S. Gilmore. Since 1896, the town and surrounding area have been covered by The Winchester Star. Another regional newspaper, The Northern Virginia Daily, is based in nearby Strasburg.''

Historic U. S. Route 11 (Main Street) traverses Stephens City proper, while Interstate 81 is located immediately east of the town line. Stephens City serves as the western terminus of State Route 277 (Fairfax Street), which begins at U. S. Route 11 and ends only away in Double Tollgate, Clarke County, Virginia, at U. S. Routes 340 and 522. In addition to Main Street, the major north–south streets in town are Barley Drive, German Street, and Mulberry Street. The major streets running east–west other than Fairfax Street are Locust Street, School Street, and Short Street/Steele Court. Plans are in place to move State Route 277 to near the Family Drive In Theatre, south of its current western terminus with US Route 11, with the eastern terminus remaining at its current location. The planned construction will also move the I 81 interchange at Stephens City, where there are a number of service stations and fast food restaurants, south of the town limits to alleviate congestion on the current Route 277 bridge, which will remain after construction is completed. Planners expect expansion of Stephens City to the south. Winchester Regional Airport is mostly used for general aviation. The nearest major airport is Dulles International Airport, approximately one hour east of Stephens City.

Water and sewer services in Stephens City are provided by Frederick Water and customers are billed by the town on a bi monthly basis. The town also provides free trash collection each week. Electricity services are provided by Rappahannock Electric Cooperative and Shenandoah Gas Company provides natural gas service.

The nearest hospitals to Stephens City are both operated by Valley Health: Winchester Medical Center in Winchester and Warren Memorial Hospital in Front Royal. Valley Health and MedExpress operate urgent care centers in Winchester, Front Royal, and Strasburg.