Overlooking the village is Tandragee Castle. Originally the seat of the Ó hAnluain sept, it was taken over by the English during the Plantation of Ulster and rebuilt in about 1837 by George Montagu, 6th Duke of Manchester. Today, its grounds are home to the Tayto potato-crisp factory.
Earlier spellings of the town's name include Tanderagee and Tonregee. They come from Tóin re Gaoith, which refers to the hillside on which the village is built.