The town grew up around the paper mill owned by Hylte Bruks AB, which started its operation in 1907. A railway was built in 1909 connecting it with Torup on the Halmstad-Nässjö line. The paper mill today has nearly 1,000 employees and is one of the greatest manufacturers of newsprint in the world. 
In the 20th century the town was popular due to the farming it had produced that had led to increased tourist sites and also now has opened several different hotels in its regions to attract more tourists in the spring and summer seasons.
Hyltebruk is also the location of the Headquarters of the AJ Group. The parent company AJ Produkter AB is a multi-channel b2b retailer of office furniture, materials handling equipment and storage solutions. The company was started in 1975 by the current Owner and Chairman, Bengt Anders Johansson.