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The racial makeup of the borough was 80.98% (7,134) White, 7.04% (620) Black or African American, 0.11% (10) Native American, 6.41% (565) Asian, 0.01% (1) Pacific Islander, 2.77% (244) from other races, and 2.68% (236) from two or more races.

Hispanic or Latino of any race were 10.77% (949) of the population.

It was the formation of Matawan Township in 1857 that shifted this area's name from Middletown Point to Matawan.

Matawan was formed as a borough on June 28, 1895, from portions of Matawan Township (now Aberdeen Township), based on the results of a referendum held that day.

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Matawan is part of the Bayshore Regional Strategic Plan, an effort by nine municipalities in northern Monmouth County to reinvigorate the area's economy by emphasizing the traditional downtowns, dense residential neighborhoods, maritime history, and the natural beauty of the Raritan Bayshore coastline.The Lenape Native Americans called the area "Mechananienk", a Lenape language word meaning "where two rivers come together", which gave rise to the area being called "Matovancons" by Dutch settlers, from which derives the name "Matawan".It may also originate from the Southern Unami Matawonge, "bad riverbank" or "bad hill", a possible reference to bluffs along Raritan Bay which were subject to erosion and collapse prior to the construction of a seawall in the 1970s.25.6% of all households were made up of individuals and 7.8% had someone living alone who was 65 years of age or older.The average household size was 2.52 and the average family size was 3.07. For every 100 females age 18 and over, there were 95.8 males.

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