Matawan is part of the Bayshore Regional Strategic Plan, an effort by nine municipalities in northern Monmouth County to reinvigorate the area's economy by emphasizing the traditional downtowns, dense residential neighborhoods, maritime history, and the natural beauty of the Raritan Bayshore coastline.
Matawan was formed as a borough on June 28, 1895, from portions of Matawan Township (now Aberdeen Township), based on the results of a referendum held that day. Matawan expanded with portions of Matawan Township in 1931 and 1933, and from Madison Township (now Old Bridge Township) in 1939.
Town was founded by Dutch in 17th century (Matawan celebrated a TriCentennial in 1980s). Scotch Irish settlers from New Hampshire later named town New Aberdeen. It was changed, but neighboring Matawan Township took the name of Aberdeen in 1970s.
As of the census of 2000, there were 8,910 people, 3,531 households, and 2,376 families residing in the borough. The population density was 3,909.1 people per square mile (1,508.8/km²). There were 3,640 housing units at an average density of 1,597.0/sq mi (616.4/km²). The racial makeup of the borough was 82.35% White, 6.53% African American, 0.02% Native American, 7.99% Asian, 0.02% Pacific Islander, 1.23% from other races, and 1.85% from two or more races. Hispanic or Latino of any race were 6.45% of the population.
There were 3,531 households out of which 30.2% had children under the age of 18 living with them, 54.3% were married couples living together, 9.1% had a female householder with no husband present, and 32.7% were non-families. 25.6% of all households were made up of individuals and 7.8% had someone living alone who was 65 years of age or older. The average household size was 2.52 and the average family size was 3.07.
In the borough the population was spread out with 22.6% under the age of 18, 7.3% from 18 to 24, 36.4% from 25 to 44, 23.3% from 45 to 64, and 10.5% who were 65 years of age or older. The median age was 36 years. For every 100 females there were 97.6 males. For every 100 females age 18 and over, there were 95.8 males.
The median income for a household in the borough was $63,594, and the median income for a family was $72,183. Males had a median income of $51,924 versus $37,113 for females. The per capita income for the borough was $30,320. About 3.8% of families and 5.4% of the population were below the poverty line, including 6.9% of those under age 18 and 7.3% of those age 65 or over.
In the late 20th century, Matawan became known for its heavily-used train station at Aberdeen-Matawan on New Jersey Transit's North Jersey Coast Line, which attracts riders from all over Western Monmouth County, and carries them to New York City directly to New York Pennsylvania Station, and via Hoboken, New Jersey.
NJ Transit is provided to the Port Authority Bus Terminal in Midtown Manhattan on the 133 bus line, with local service available on the 817.
Matawan is traversed by Route 34, Route 79 and [[County Route 516 (New Jersey)|County Route 516 as well as exits 117 and 120 off the Garden State Parkway.
Matawan is the northern terminus of the middle segment of the Henry Hudson Trail, and the western terminus of the eastern section.