Watlington is a small market town and civil parish about 7 miles (11 km) south of Thame in Oxfordshire, near the county's eastern edge and less than 2 miles (3 km) from its border with Buckinghamshire. The parish includes the hamlets of Christmas Common, Greenfield and Howe Hill, all of which are in the Chiltern Hills. The 2011 Census recorded the parish's population as 2,727.

The Watlington area is likely to have been settled at an early date, encouraged by the proximity of the Icknield Way. The toponym means "settlement of Waecel's people" and indicates occupation from around the 6th century. A 9th-century charter by Æthelred of Mercia records eight 'manses' or major dwellings in Watlington. The Domesday Book of 1086 referred to the town as Watelintone or Watelintune, and identified the area as an agricultural community valued at £610. Medieval documents indicate that the modern street plan was in existence in the 14th century, as Cochynes-lane (Couching Street), and Brook Street are recorded.

There are records of inns in Watlington since the 15th century. In 1722 the town's market was listed as being held on a Saturday. By the end of the 18th century the town had six inns, all of which were bought up in the next few years by a local brewing family, the Haywards. The number of licensed premises increased until late in the 19th century when George Wilkinson, a Methodist bought six of them and closed them down. Today Watlington has three public houses remaining: The Spire & Spoke (ex-Carriers Arms), The Chequers and The Fat Fox Inn.

Parliamentarian troops were billeted at Watlington during the English Civil War. It is thought that John Hampden stayed in the town the night before the Battle of Chalgrove Field.

In 1664-65 the Town Hall was built at the expense of Thomas Stonor. Its upper room was endowed by Stonor as a grammar school for boys, and in 1731 Dame Alice Tipping of Ewelme gave a further endowment to increase the number of pupils. In 1842 the town Vestry established a National School, which shared the same rooms in the Town Hall. In 1843 a National School for girls was built next to St Leonard's church. In 1872 the boys' and girls' schools were absorbed into a new Board school, which like its predecessors was affiliated to the National Society for Promoting Religious Education. In 1927 the school was divided into separate junior and senior schools. In 1956 a new secondary school - the Icknield School - opened for senior pupils and the primary school took over the old premises. The Icknield School is now Icknield Community College.

By 1895 the Town Hall, no longer used as a school, was in disrepair. In 1907 it was restored by public subscription. It is a landmark at the meeting point of three roads in the centre of the town.

Since 1990 Watlington has been twinned with the town of Mansle in the Poitou-Charentes region of France.

The Watlington Hoard, a collection of silver items dating back to the time of Alfred the Great in the 9th century, was rediscovered in Watlington by James Mather, an amateur metal-detectorist, in 2015. The hoard was subsequently excavated, and eventually purchased by the Ashmolean Museum in Oxford for £1.35m.

The town of Watlington lies at the foot of Watlington Hill, a c. 140 metres (460 ft) (240 metres (790 ft) elevation) peak on the western edge of the Chiltern Hills Area of Outstanding Natural Beauty.

The Ridgeway National Trail walking route, which is part of the longer Icknield Way, passes nearby between the town and the hill.

Due to its close proximity and easy access to the Chilterns, Watlington is a popular gateway to the many outdoor activities in the area, including hill walking, cycling and birdwatching, especially of the red kite, which is well established in the vicinity.

Watlington Hill is home to a wide variety of flora and fauna, and is designated a Site of Special Scientific Interest (SSSI) as part of Watlington and Pyrton Hills. It is managed by the National Trust.[13] The nearby Shirburn Hill is another SSSI in the area.

The Watlington White Mark, a spire mark, is cut into the chalk soil of Watlington Hill. This was designed by local squire Edward Horne, who felt that the parish church of St Leonard, when viewed from his home, would be more impressive if it appeared to have a spire. He therefore had this unusual folly cut into the chalk soil in 1764, and it continues to this day to be maintained by the local residents. The mark is 36 feet (11 m) wide at its base and 270 feet (82 m) long.