The first European settlers in Tenafly were Dutch immigrants, who began to populate the area during the late 17th century. The name "Tenafly" is derived from the early-modern Dutch phrase "Tiene Vly" or "Ten Swamps" which was given by Dutch settlers in 1688. Other derivations cite a Dutch-language connection to its location on a meadow.

The borough has been one of the state's highest-income communities. Based on data from the American Community Survey for 2013–2017, Tenafly residents had a median household income of $153,381, ranked 13th in the state among municipalities with more than 10,000 residents, more than double the statewide median of $76,475.

​Tenafly's street plan and overall development were largely determined by its hills and valleys. The eastern part of the borough is referred to as the "East Hill" for its higher elevation in relation to the rest of the borough. There, the terrain rises dramatically to the east of the downtown area, terminating at the New Jersey Palisades, overlooking the Hudson River. Nearby is the Tenafly Nature Center, located at 313 Hudson Avenue.

A neighborhood restaurant catered to locals and neighboring towns.  Traditional family recipes with a modern flair.  Intimate Vietnamese eatery features generous plates of traditional cuisine in a simple dining room.​