Butterworth, Eastern Cape, is the oldest settlement in the former homeland of Transkei. In 1960 the population consisted of only 2367 people.

Butterworth, described as the "gateway to the Transkei", grew from a Wesleyan mission station, founded close to Hintsa's kraal by the Rev. W. J. Shrewsbury in 1827, the third in the chain of missions established, and was named after Joseph Butterworth, former treasurer of the Wesleyan Mission Society. The mission station was destroyed during the Sixth Frontier War (1834-35) and was the scene of heavy fighting in the Seventh Frontier War (1846-47).

The town was founded in 1880 and achieved municipal status in 1904.