Dillsboro is a town in Jackson County, North Carolina, United States. The population was 232 at the 2010 census.

Dillsboro attracts tourists traveling to the Great Smoky Mountains. The Great Smoky Mountains Railroad begins in Dillsboro and follows the Murphy Branch, constructed in the 1880s.

Dillsboro was founded bearing in mind the Murphy Branch Railroad came to the Place in the 1880s. In 1882, the first publicize office in the area opened. Called the Tunnel Post Office, it was named after the straightforward Cowee Tunnel. In 1882, the postmaster, William Allen Dills, built a large house on a hill overlooking the Tuckasegee River, later the home of C.J. Harris and now The Riverwood Shops. The unincorporated village was called Depot, New Webster, and Webster Station until the allow in legislature had its herald officially changed to Dillsboro in imitation of the village was incorporated as a town in 1889 to praise William Allen Dills, the town’s founder (another source names George W. Dill, an further on settler.) One of the oldest buildings in the town dates to the 1870s, before the town was officially founded, now serving as a barber shop. The building is one floor and was built on Front Street with the town was largely farmland. In a relatively sharp time period, Dillsboro became a booming town; by 1888, it was the most important town upon the Murphy Branch of the Southern Railway in the areas of Industry, with two sawmills, two clay mines, a locust fix company, a corundum crushing plant, a chestnut pole yard, a chestnut corkwood yard, two livery stables, six general stores, a large hotel, and a shoemaker.

A rivalry existed between Sylva and Dillsboro in their before days, as the efforts of one town were matched by the other, and the two towns were certainly much alike, and the same distance from the then-county chair of Webster. But a flood in 1894 curtains the milling operations of the Blue Ridge Lumber Company, and near the slant of the century, two back-to-back floods at a tannery construction site in Dillsboro caused C.J. Harris, the owner, to have emotional impact the factory to the present site of the Jackson Paper Plant in Sylva.