Castle Donington stands on the former Nottingham to Birmingham trunk road. The town is a mix of the old and new, with modern shops mixed with dignified Georgian and Regency houses. Several timber framed houses dating from the 17th century and earlier survive along the main road.
Lace making was an important industry up until the 1850, when a sharp decline in the population is recorded. The population did not recover to the same level until a century later, when in 1950 over 3000 people are recorded as living in the village.
Bondgate, Borough Street and Clapgun Street formed the nucleus of the historic village, with the Castle formerly standing at the eastern end of Borough Street on Castle Hill. It was abandoned and its stone used to build Donington Hall within Donington Park.