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When Tarnovgrad became the capital of the Second Bulgarian Kingdom in the 12^th century and the road through the Shipka Pass subsequently gained strategic importance, free and skilful military people took the responsibility to guard the road and established a small village. They had the privilege to pay lower taxes and to preserve the ownership on their lands and their production. The local population set up its life as an inseparable part of the Bulgarian State, built a church, a monastery and related its existence to the passing of the relics of St. Petka, the cult of whom has remained to this day.  The conquest of the State by the Ottoman Turks had little impact on their Orthodox Christian faith, their lifestyle and traditions. They continued guarding the pass, which made them part of the militarized detachments of the dervens, as the guardians of the road were then called. Their task was to keep the passing caravans and state officers safe, for which they bore collective responsibility.  For a short time, they were assigned to the lands of a senior military, but later became part of the people of the Grand Vizier. They received a sultan’s decree granting them the privilege to carry weapons, to pay only a half of the taxes, and not to feed large military units. Every new sultan confirmed the decision.  Their number grew through the years from 96 families in 1478 to 500 in 1545 and at the end of the 17^th century, there were 3000 inhabitants. 

In the years of the Russo-Turkish war in 1877-1878, which brought freedom to Bulgarians, Gabrovo was one of the ten Bulgarian cities that had the greatest contribution to the victorious end, especially during the epic Shipka Battles in August 1877. The local people took part in the voluntary army units, organized armed bands of guardians, worked on the construction of roads and military facilities, they were reconnoitres and led military columns on their way to the Russian armies south of the Balkan Mountains.

In the newly established state, the intellectuals from Gabrovo became the core of the state administration. Among them were members of the Parliament, the first prime minister, the minister of education and the minister of the interior. Gabrovo was one of the powerhouses of the new Bulgarian industry. The heritage left from the years before the Communist coup in 1944 became the basis of an industrial city, known for its weaving, clothing and leather industries, and institutes of technology.  With the democratic changes in 1989, the industrial giants were replaced by smaller robotic companies, exporting products to the whole world.