town, Allier département, Auvergne région, central France, northwest of Clermont-Ferrand. It is located on the Cher River a little below the point where it emerges from the gorges of its upper course. The old town, on a hill dominated by a château, is surrounded by new districts that have spread to both banks of the Cher. The town expanded rapidly after the construction of the Berry Canal in 1830 and the opening of coal mines in the region, and again, after 1920. Coal is no longer mined.

The winding streets of the old town have a number of 15th- to 16th-century wooden houses. The town's two old churches are both partly Romanesque. The château of the dukes of Bourbon (15th and 16th centuries) now houses a museum; a former Ursuline convent contains the municipal library.

Montluçon is an industrial, commercial, and administrative centre, with metallurgical works and plastics, tire, electrical equipment, electronics, and chemical factories. Many firms work as component manufacturers for the automobile industry. The Paris-Clermont-Ferrand highway passes nearby. Pop. (1999) town, 40,113; (2005 est.) 37,369.