Hameln is a commercial centre with a rail junction and a river port. Its industries include the manufacture of electrical products, textiles and carpets, chemicals, machinery, and food products. Tourism is also important. Hameln is the central city of the Weser Highland scenic region and nature park.

The well-known legend of the ratcatcher, the Pied Piper of Hamelin, became associated in the 16th century with the alleged departure and fate of the children of Hameln in 1284. One hypothesis links the story with an exodus of the young men in connection with the German colonization of the east. The Pied Piper has also been likened to Nicholas of Cologne, who in 1212 led thousands of German children on the ill-fated Children's Crusade. There is a ratcatcher collection in the local history museum, and there are ratcatcher inscriptions on two of the town's many notable half-timbered Renaissance houses, the Rattenfängerhaus (“Ratcatcher's House”) and the Hochzeitshaus (“Wedding House”). Pop. (2003 est.) 58,902.