The town was established in 1954 in order to provide housing and facilities for Sasol employees. Sasolburg was the subject of an attack by Umkhonto we Sizwe (MK) - the African National Congress's military wing - in 1980. The attack proved to be largely ineffectual in terms of sabotaging the manufacturing processes of the Sasol plant. However the propaganda impact of the attack was significant.

Sasolburg is at a high altitude with a fairly dry climate and large seasonal temperature variation. It is situated on the Vaal river, which separates the Free State from what was formerly the province of Transvaal, and is not far from the Vaal dam where excellent windsurfing spots can be found. The Sasol corporation has sponsored extensive infra structural developments in Sasolburg, such as an Olympic size swimming pool. World class athletics facilities and a large number of churches can also be found in Sasolburg. The Ettienne Rousseau Theatre plays host to a wide range of Afrikaans artists throughout the year.