Dushanbe, which means "Monday" in Persian, (فارسی), developed on the site of a Monday marketplace village, Dyushambe-Bozor, and its former name Dyushambe was a Russified version of the word meaning "Monday" in Persian (du-shanbe from du two + shanbe Saturday, lit. "second day after Saturday"). Following the Red Army victory in Central Asia the village was upgraded to town in 1925 and made the capital of the newly created Tajik Autonomous Soviet Socialist Republic (Tajik ASSR). After the transformation of Tajik ASSR to Tajik Soviet Socialist Republic (Tajik SSR) in 1929, Dyushambe was renamed Stalinabad, after Joseph Stalin. As part of Nikita Khrushchev's de-Stalinization initiative, the city was renamed Dushanbe in 1961.
The Soviets transformed the area into a centre for cotton and silk production, and relocated tens of thousands of people to the city from around the Soviet Union. The population also increased with thousands of ethnic Tajiks migrating to Tajikistan following the transfer of Bukhara and Samarkand to the Uzbek SSR. A peaceful and relatively prosperous city under Soviet rule, Dushanbe was home to a university and the Tajik Academy of Sciences. Severe rioting occurred in February 1990, after it was rumored that Moscow planned to relocate tens of thousands of Armenian refugees to Tajikistan. Dushanbe riots were primarily fueled by concerns about housing shortages for the Tajik population, but they coincided with a wave of nationalist unrest that swept Transcaucasia and other Central Asian states during the twilight of Gorbachev's era. The city was badly damaged as a result of the Civil War in Tajikistan (1992–1997) that sprang up in the nation shortly after its independence. However resurgences in the Tajik economy have transformed Dushanbe into a rapidly growing commercial, cultural and industrial center. Many multi-story apartment and office buildings were constructed and the city was beautified during this period. Monuments and statues commemorating the city's Persian and Iranian past were erected.
Coal, lead, and arsenic are mined nearby in the cities of Nurek and Kulob allowing for the industrialization of Dushanbe. The Nurek Dam, the world's highest as of 2008, generates 95% of Tajikistan's electricity, and another dam, the Roghun Dam, is planned on the Vakhsh River. A leading cotton textile center, Dushanbe also produces silk, machinery, electrical appliances, clothing, leather goods, tractor parts, and foodstuffs. The city of Dushanbe is now home to a number of modern telecommunications, aeronautic and other business corporations adding vitality to its economy. Tourism and ecotourism to the Dushanbe region is a component of the city's service industry, which includes shopping centers, cafes, restaurants, and hotels. Museums and theatres add a cultural element to the economy.
Tajik Air has its head office on the grounds of Dushanbe Airport in Dushanbe. Somon Air has its head office in Dushanbe.