Trumansburg was a milltown and commercial center for the agricultural community from its inception until the Second World War. Since the late 1940s it has become a combination of a bedroom suburb for Ithaca and a modest tourist destination, with restaurants, and antique stores. Since 1991, the Finger Lakes GrassRoots Festival of Music and Dance has taken place each July at the village fairgrounds and is hosted by nationally popular Trumansburg-based band Donna the Buffalo. The village is also located along the Cayuga Wine Trail and is close to Taughannock Falls.