Eberswalde's location at a natural ford of the Finow River, together with nearby forests, bog-iron deposits, and water power, made it an early centre for trade, woodworking, milling, and metalworking (the first iron forge dates from 1440). The Finow was canalized (1602–20), improving navigation, and although the city was sacked during the Thirty Years' War (1618–48), development continued with the construction of the Finow Canal in the 17th century. Traditional industries were given new impetus in the mid-18th century by the settlement of Thuringian cutlers and in the 19th century by the rise of what is still Europe's largest marine and industrial crane factory. The Oder-Havel Canal (completed 1914) passes just north of the city; an inland harbour was opened in 2000. Modern industries include the production of pipes and corrugated materials.

Cultural resources of the city include a forest research institute (1830) with a botanical garden and a local museum. From 1970 to 1993 the city was united with Finow under a single administration. Pop. (2003 est.) 42,466.