Paoli is a town in Paoli Township, Orange County, in the U.S. state of Indiana. The population was 3,677 at the 2010 census. The town is the county seat of Orange County.
Paoli was laid out and platted in 1816. It was named for Pasquale Paoli Ash, the son of North Carolina governor Samuel Ashe. A post office has been in operation at Paoli since 1817.
In its first decades, it was noted as a Quaker town that played a role in the Underground Railroad by transporting enslaved people from the South to Canada. In the 1900s it became known as the site of the Pioneer Mothers Memorial Forest, a surviving fragment of the once-extensive virgin oak forest of southern Indiana.
Thomas Newby Braxtan House, Orange County Courthouse, and Paoli Historic District are listed on the National Register of Historic Places.
Paoli is located at 38°33′28″N 86°28′9″W (38.557681, -86.469209).
According to the 2010 census, Paoli has a total area of 3.75 square miles (9.71 km2), of which 3.74 square miles (9.69 km2) (or 99.73%) is land and 0.01 square miles (0.03 km2) (or 0.27%) is water.
The climate in this area is characterized by hot, humid summers and generally mild to cool winters. According to the Köppen Climate Classification system, Paoli has a humid subtropical climate, abbreviated "Cfa" on climate maps.
As of the census of 2010, there were 3,677 people, 1,484 households, and 923 families living in the town. The population density was 983.2 inhabitants per square mile (379.6/km2). There were 1,645 housing units at an average density of 439.8 per square mile (169.8/km2).