Yeghegnadzor is one of the ancient settlements of the historic province of Syunik within Greater Armenia (Armenia Major). It was mentioned in history since the 5th century. The ruins of a medieval fortress could be found near the city.
The main economical activities in the city are based on construction sector and industry. The most important industrial firm of the city is the wine factory. There are many firms as well for electro-mechanical tools production. Lighter productions of canned foods, textile and jewellery are also found in the town.