Originally the name was two words, Oro Fino, applied to a gold mining camp established in 1861 two miles (3 km) south of Pierce, that is now a ghost town. When the Nez Perce reservation opened to settlers in 1895, Clifford Fuller set up a trading post on his new homestead and the town (Orofino-on-the-Clearwater) was established the next year. The railroad, later part of the Camas Prairie Railroad, arrived from Lewiston in 1899.
Orofino is home to both the Idaho Correctional Institution - Orofino and Idaho State Hospital North. These two facilities are located adjacent to another Orofino institution: Orofino High School. The mascot for Orofino High School is the Maniac, one of only two "Maniac" mascots in the country. The town hosts the annual Orofino 4th of July Celebration as well as the Clearwater County Fair and Lumberjack Days in late summer.
As of the census of 2000, there were 3,247 people, 1,137 households, and 767 families residing in the city. The population density was 1,349.0 people per square mile (520.2/km²). There were 1,279 housing units at an average density of 531.4/sq mi (204.9/km²). The racial makeup of the city was 93.93% White, 0.37% African American, 2.13% Native American, 0.59% Asian, 0.09% Pacific Islander, 0.99% from other races, and 1.91% from two or more races. Hispanic or Latino of any race were 2.25% of the population.
There were 1,137 households out of which 28.9% had children under the age of 18 living with them, 54.1% were married couples living together, 8.4% had a female householder with no husband present, and 32.5% were non-families. 27.6% of all households were made up of individuals and 12.8% had someone living alone who was 65 years of age or older. The average household size was 2.33 and the average family size was 2.83.
In the city the population was spread out with 20.1% under the age of 18, 7.9% from 18 to 24, 30.4% from 25 to 44, 26.1% from 45 to 64, and 15.6% who were 65 years of age or older. The median age was 40 years. For every 100 females there were 132.9 males. For every 100 females age 18 and over, there were 143.2 males.
The median income for a household in the city was $30,580, and the median income for a family was $36,908. Males had a median income of $30,386 versus $20,968 for females. The per capita income for the city was $14,563. About 7.6% of families and 12.1% of the population were below the poverty line, including 16.3% of those under age 18 and 7.1% of those age 65 or over.
The city is served by US 12, a two-lane undivided highway on the south bank of the Clearwater River, connected to Orofino by a bridge. The highway connects to Lewiston to the west and Missoula, Montana (over Lolo Pass) to the east. The route is known as the "Northwest Passage Scenic Byway," a National Scenic Byway.