In 1954, a local farmer sold his 160-acre farm to Sam and Jack Hoffman, owners of the Father and Son Construction Company, for a subdivision in Cook County. The land, now known as Parcel A, was located east of Roselle Road between Golf and Higgins Roads. The first homeowners began to move into the new subdivision in late 1955. The homes were built on half-acre lots.
On 19 September, 1959, residents voted to incorporate as the Village of Hoffman Estates. The charter was issued on 23 September, 1959. The population at the time was about 8,000, and the incorporated area was just under three square miles. In 1958, the Northwest Tollway opened, making the village more attractive to Chicago commuters. Beginning in 1961, the first land north of the tollway was annexed to the Village of Hoffman Estates. Some 2000 acres were annexed by 1962, including the areas that are now Winston Knolls, Westbury and the Paul Douglas Forest Preserve. The annexations more than doubled the incorporated land area.
The opening of the Woodfield Mall to the east in 1971 transformed the area into a major business centre. Various small office buildings were built by 1980, followed by major complexes such as Northwest Corporate Centre, Barrington Pointe, Greenspoint, and Siemens Gammasonics.

The population nearly tripled to 22,000 in 1970, grew to 37,000 in 1980 and the 1990 census put the total population at 46,363 with over 16,000 households.