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Dryden was incorporated as a town in 1910 and as a city in 1998. The main industries in Dryden include manufacturing (particularly pulp and paper), renewable energy (including bioenergy and solar energy), and service. Dryden is located on Ontario's Highway 17, which forms part of the Trans Canada Highway. It is situated halfway between the larger cities of Winnipeg and Thunder Bay.

Before settlement by Europeans, the Dryden area was inhabited by the Anishinaabe. They used the shore by the Wabigoon River as a camping site, calling it Paawidigong ("the place of rapids" in Ojibwe). The settlement was founded as an agricultural community by John Dryden, Ontario's Minister of Agriculture in 1895. While his train was stopped at what was then known as Barclay Tank to re water, he noticed clover growing and decided to found an experimental farm the following year. The farm's success brought settlers from southern Ontario and the community came to be known as New Prospect. In 1886, gold was discovered near the area, also attracting people. In 1897, the community was renamed to Dryden to honour the minister of agriculture. It incorporated as a town in 1910 and as a city in 1998 after merging with the neighbouring township of Barclay. One of the earliest industries in the area was pulp and paper. A paper mill was built in the town in 1910 because of the abundance of wood suitable for kraft pulping as well as energy from the Wabigoon River. The town came into national consciousness because of mercury contamination. In the 1970s, it became known that the Dryden pulp and paper operations discharged ten tons of mercury directly into the Wabagoon River over a span of eight years. The mercury caused persistent environmental damage, poisoned river systems and lakes, and led to members of the Grassy Narrows community suffering severe mercury poisoning known as Minamata disease. The town was also the site of the March 10, 1989 crash of Air Ontario Flight 1363 from Thunder Bay to Winnipeg, which killed 24 people.

Dryden is located on the Wabigoon River and Wabigoon Lake in northwestern Ontario. It borders Thunder Lake and Aaron Provincial Park on the east, and the smaller Milanese's Lakes are also located within the city. Dryden is located 340 kilometres (210 miles) northwest of Thunder Bay. Nearby communities include Wabigoon, Vermilion Bay, Kenora, and Sioux Lookout. Dryden is also near the Eagle Lake First Nation. Along with most of the rest of Ontario west of 90° West, Dryden is in the Central Time Zone and observes daylight saving time.

Dryden experiences a humid continental climate (Dfb) with short, warm summers, and long, cold winters. The highest temperature ever recorded in Dryden was on 11 July 1936. The coldest temperature ever recorded was on 11 February 1914.

In the 2021 Census of Population conducted by Statistics Canada, Dryden had a population of 7388 living in 3314 of its 3574 total private dwellings, a change of from its 2016 population of 7749. With a land area of , it had a population density of in 2021. The population centre, or urban area, of Dryden had a population of 5,586 in the 2016 census, a 0.9% increase from 2011. The median value of dwellings in the urban area is CA$150,505, significantly lower than the national median of $341,556. The median household income (after tax) in Dryden is $58,624, almost on par with the national average at $61,348. 21% of the population was 65 years and over as of the 2016 census compared to 16.7% in the entirely of Ontario. The median age of 46.2 was nearly 5 years older than the provincial median of 41.3. In 2016, approximately 1,465 residents (19.3%) considered themselves to have an Aboriginal identity. 220 residents (2.9%) belonged to a visible minority group (i. e. people who are not Aboriginal and "non Caucasian in race or non white in colour"). The largest group was Filipino, representing about 80 residents (1% of the population).

Dryden is home to the tall "Max the Moose" statue on the Trans Canada Highway, which has been described as the "mascot" of the city. It was built in 1962, out of a metal frame and concrete plaster. Several annual music concerts are held featuring local musicians. "Come Together" is an annual December 27 or 28th concert, and "Kickin' Country" is a mid April country show. Both featuring local acts. The "Blue Moon Festival" is a daylong event that is held on or near a blue moon calendar event in the summer months. Dryden is home to a variety of arts groups. "Theatre 17" is a community theatre group under the direction of Judith Hamilton that stages theatrical productions, including Noises Off and Tony and Tina's Wedding. The DRAC (Dryden Regional Arts Council) is an artists group that organizes yearly art tours, art shows and also operates a retail store known as Naked North Art Gallery. The Dryden Community Band is a group of musicians who perform under conductor Ryan Graham.

Dryden is currently part of the provincial electoral district of Kenora—Rainy River. Kenora—Rainy River's Member of Provincial Parliament has been Greg Rickford, a member of the Progressive Conservative Party of Ontario, since 2018. He was preceded by Sarah Campbell and Howard Hampton, both of the New Democratic Party. Federally, the city is part of the Kenora riding, which has been represented by Eric Melillo, a Conservative, since 2019. He was preceded by the Liberal Bob Nault and the aforementioned Greg Rickford. The city council is composed of six councillors and a mayor. As with the rest of Ontario, municipal elections occur every 4 years. Currently, Dryden's mayor is Greg Wilson, elected 2018. Previous mayors of Dryden have included Craig Nuttall (elected in 2010 and 2014), Anne Krassilowsky (elected in 2002 and 2006), and Roger Valley in the 1990s.