Squire Clement Beckwith laid out the town in 1850 and named it to honor his daughter, Matilda. It is not clear why he chose to call it Port Matilda, but the name may have reflected his wish that the town would eventually be connected to the Bald Eagle and Spring Creek Branch of the Pennsylvania canal. While that did not happen, the Bald Eagle Railroad did arrive, and the community became a market center in the Bald Eagle Valley for agricultural and lumber products.
Port Matilda has a total area of .6 miles with a population of just over 600 inhabitants. This small town has a bank, a market, a tavern, a post office, and an elementary school. The borough has U.S. routes 322, 220 and Interstate 99 making other areas easily accessible.