The local govrenment reform o 1952 formit this municipality through the amalgamation o a lot o vera sma municipalities. It got its name frae the anerlie lairger built-up locality in the aurie, Vårgårda. Its territory wis no affectit bi the reform o 1971.
The Swadish releegious revival in the 19t century wis strang in Vårgårda Municipality, an the Christian climate is the day dispersed in mony denominations.
Industrially, Vårgårda Municipality has several nationwide recognized companies, such as Autoliv.