According to the 2010 census, the village has a total area of 2.97 square miles (7.7 km2), of which 2.73 square miles (7.1 km2) (or 91.92%) is land and 0.24 square miles (0.62 km2) (or 8.08%) is water.
As of the census of 2000, there were 2,955 people, 1,228 households, and 878 families residing in the village. The population density was 1,103.1 people per square mile (425.7/km²). There were 1,258 housing units at an average density of 469.6 per square mile (181.2/km²). The racial makeup of the village was 94.15% White, 0.98% African American, 0.10% Native American, 1.73% Asian, 1.73% from other races, and 1.32% from two or more races. Hispanic or Latino of any race were 3.93% of the population.
There were 1,228 households out of which 27.6% had children under the age of 18 living with them, 59.4% were married couples living together, 8.0% had a female householder with no husband present, and 28.5% were non-families. 23.0% of all households were made up of individuals and 8.1% had someone living alone who was 65 years of age or older. The average household size was 2.41 and the average family size was 2.83.
In the village the population was spread out with 20.9% under the age of 18, 6.7% from 18 to 24, 33.1% from 25 to 44, 25.5% from 45 to 64, and 13.8% who were 65 years of age or older. The median age was 39 years. For every 100 females there were 95.7 males. For every 100 females age 18 and over, there were 96.7 males.
The median income for a household in the village was $61,219, and the median income for a family was $70,625. Males had a median income of $50,500 versus $37,627 for females. The per capita income for the village was $31,695. About 4.7% of families and 4.8% of the population were below the poverty line, including 6.6% of those under age 18 and 8.0% of those age 65 or over.
The village of East Dundee was incorporated in 1871, four years after West Dundee. A historic district along the Fox River and stores on Main Street constitute the commercial part of East Dundee. The historic feed and coal store became Dundee Lumber, which burned down in March 2007. A former railroad bed is now the Fox River Trail, which follows the east side of the Fox River through town. The train depot was rebuilt in 1984 as a tourist center. Santa's Village amusement park operated from 1959 to 2006. It reopened in 2011 under new ownership as Santa's Village AZoosment Park.