There are two theories regarding the origins of the town's name: according to the first, it derives from the presence of Mount Fano, a place consecrated to the gods, while for the second, from Mount Fauno (faun), because legends report the presence of statue of a faun in the area.
It is a municipality in the province of Macerata, located on a hill, halfway between the province of Ancona and Macerata, whose territory is crossed by the streams Menocchia and Fiumicello. The village features a beautiful typical medieval old center. The local economy is mainly based on agricultural activities, but there are also some small industries.
The first settlement, the ancient Veragra, was founded by the Piceni (an ancient Italic population), after which the area was colonized by the Romans who built here a coach station along the consular road that linked Ancona to Nocera Umbra. After the fall of the Roman Empire, the territory was the object of conquest by Barbarian invaders: it was during this time that the Goths attacked and seriously damaged Montefano. Occupied and looted by the troops of Francesco Sforza, during the Osimo domain, soon after it was ceded to the Papal States. At the end of the XV century the town was proclaimed municipality.

Attractions:
- the Collegiate Church of San Donato, originally built between the XII and XIII century in Baroque style, it was rebuilt twice between the end of the second half of XVI and the XVIII centuries. It features a brick façade divided into two orders;
- the Church of Santa Maria Assunta, which preserves within a precious wooden altarpiece and a valuable XVI century painting attributed to De Magistris;
- the Church of St. Philip Benizi, which was built in 1667, in Baroque style. The adjoining Monastery houses a well stocked library;
- the XIX century Municipal Theatre, which over the last centuries has submitted several renovations and restorations, the most important of which was in the late XIX century. Superb are the decorations of the lodges and the ceiling paintings by Perugino Bruschi;
- Palazzo Carradori-Ulivi.