Karacabey is an industrial area as well as an agricultural one. It is known as the plantation area of a special variety of onions. There are many famous food factories around Karacabey such as Nestle and many varieties of vegetables and fruits are planted in Karacabey. There is a lake near it called Uluabat. The Marmara Sea is 32 km north.
The town is named for a soldier during the Ottoman Empire Era. The former name of the town was Mikalick (Turkish: Mihaliç), after which a cheese was named, while its ancient name was Miletopolis (Greek: Μιλητόπολις). Miletopolis was apparently the chief settlement of a people called the Milatæ, whose name was hellenized to suggest a Milesiancolony. Its people colonized Gargara.
Miletopolis was a suffragan of Cyzicus until the 12th or 13th century. Around the end of the twelfth, it united with Lopadium as an archbishopric. There are two historical mosques in Karacabey, one from the 14th century.