The present municipality was formed in 1974 when a part of the dissolved rural municipality of Fågelsås was amalgamated with "old" Habo. It was transferred from the dissolved Skaraborg County to Jönköping County in 1998.
Things to do in the municipality include activities related to the lake Vättern, such as fishing, bathing and hiking. It offers plenty of nature and outdoor activities. Just outiside the seat is a forest of beech woods planted by count Per Brahe the younger in the 17th century and lovely for recreational walks. And within the municipality two areas have been deemed important enough to be nature reserves: Fiskebäck has a moist ground where hazel and oak have claimed most of the space in competition with aspen, bird cherry, birch, sallow, hawthorn, beech and ash; while Hökensås is distinguished by a varied terrain of valleys and slopes with some 50 tarns and small lakes and a fauna of great variety.