Milford is a town in Penobscot County, Maine, United States. It is located across the Penobscot River from the city of Old Town. The population of Milford was 3,070 at the 2010 census. The town's slogan is the "Best little town by a dam site," referring to the Milford Dam abutting Milford on the Penobscot River, south of the Penobscot Indian Island Reservation.
The settlement was known as Sunkhaze plantation before it was incorporated as Milford in 1833. Milford was the site of a major 19th-century water powered sawmill on the Penobscot River. Most of its lumber was shipped from nearby Bangor. The large Bodwell Water Power Co. sawmills (1889), owned by Maine Governor Joseph Robinson Bodwell, burned in 1891, almost taking the village with it. The present Bodwell Water Power Co.