Molalla is a city in Clackamas County, Oregon, United States. The population was 8,108 at the 2010 census.
Molalla was named after the Molalla River, which in turn was named for the Molala, a Native American tribe that inhabited the area. William H. Vaughan took up a donation land claim in the area in 1844. Molalla post office was established in 1850, near the site of Liberal, and was discontinued in 1851. The post office was reestablished in 1868 and it ran until 1874, then was reestablished in 1876, which is when it was probably placed at the present location of Molalla.
Since the late 1990s the city has been experiencing a surge in growth and expansion in the residential sector. A number of business franchises have located in Molalla since 2000. In 2002, Molalla installed its first stoplight, at the intersection of Oregon Route 211 and Oregon Route 213, because of the traffic brought by the increased business activity.
Molalla is located in the foothills of the Cascade Range, near the Mount Hood National Forest, 15 miles (24 km) south of Oregon City and 13 miles (21 km) from Interstate 5. Molalla is surrounded by farms and rural residential development. There are many rock quarries, and thousands of acres of private timberlands, that feed natural resource materials into the economy.