The area around Gabrovo, inhabited since the Neolithic, gained economic importance after Veliko Tarnovo became capital of the Second Bulgarian Empire in the 12th century. Craftsmanship and trade prospered due to the proximity to both the capital and the Balkan passes. Medieval Gabrovo was a small pass village of about 100 houses.

According to the most widespread legend, Gabrovo was founded by a young blacksmith called Racho, close to whose fireplace a hornbeam (габър, gabar in Bulgarian) rose, so the settlement acquired its name.

After the Ottoman invasion of the Balkans in the 14th century, the demographic position of Gabrovo changed significantly, as it was the only settlement in a considerably large geographic area and an attractive place for Bulgarians fleeing from the conquered capital and neighbouring fortresses. It turned from a village into a small town (palanka) and began to develop as an economic, cultural and spiritual centre. More for Gabrovo

Sevlievo (Bulgarian: Севлиево) is a town in north-central Bulgaria, part of Gabrovo Province. Sevlievo is known as one of the wealthiest towns in Bulgaria owing to the well developed local economy, high employment rate and major foreign investments, such as the American Standard Companies factory.

The earliest traces of occupation in the region date back to the late Neolithic period (around the 8th century BC). Some Thracian tombs still survive. Hotalich Fortress is the last medieval town. It had been inhabited for more than 1,000 years and functioned as an important defensive center. Hotalich existed for centuries together with the settlement on the site of the contemporary town, known as Servi and Selvi.

In the middle of the 19th century, the development of crafts led to the concentration of large sums of money in the crafts' societies. Commercial trips across the Ottoman Empire, Europe and Russia enriched general knowledge. More for Sevlievo

Tryavna (Bulgarian: Трявна) is a town in central Bulgaria, situated in the north slopes of the Balkan range, on the Tryavna river valley, near Gabrovo. It is famous for its textile industry and typical National Revival architecture, featuring 140 cultural monuments, museums and expositions. Tryavna is the birthplace of Bulgarian writer Pencho Slaveykov and revolutionary Angel Kanchev. The village was founded as early as the Thracian Era. However, the first documents of its existence date back to the 12th century. During Ottoman Bulgaria period locals defended the pass and enjoyed privileges for this reason. Only Bulgarians lived in the town; the Turks never gained access to it. During the period of Bulgarian National Revival, the town was heavily involved in the development of crafts. Houses from this period feature their own architectural design. The ground floors had irregular forms and housed craftsmen and traders. The upper floors featured wooden bow-windows, the roofs were covered with well arranged rocks.