The Swedish local government reform of 1952 formed this municipality out if five former entities, and it has not been amalgamated with others since then.
About half of the municipal population live in the seat, the rest is spread between small localities and rural areas.
Gnosjö Municipality has a high concentration of immigrants, around 50-60% of the inhabitants is an immigrant or has foreign roots.
Gnosjö is referred to as the centre of the Gnosjö region which is an area of enterprising small industries, driven by the distinctive Gnosjö Spirit.
Gnosjö has a tradition of small industries. Despite its small size of some 1,100 people at the time, it had been the subject of a book describing its customs and locals in 1906 (F.J.E. Eneström: Gnosjöboarna, deras hemslöjd, seder och lefnadssätt).
Various small industries dominate the landscape. Here is a small but nationally renowned amusement park called High Chaparral offering Wild West experiences. And there is a small museum of the local industrial history, in this case a mechanical work shop.
But the nature is also appealing and offers good possibilities for wildlife, canoeing, fishing, hiking, etc. The Store Mosse is a national park consisting of the largest boggy ground south of Laplandia.
In the table the localities are listed according to the size of the population as of December 31, 2005. The municipal seat is in bold characters.