Prior to 1949, People's Square was a part of the horseracing course of Shanghai. After gambling and horseracing were banned by the new Communist government, a part of the race course became the People's Square, which included a large avenue and spectator stands for use during parades.

In the 1990s, major changes were made to the square. The Shanghai Municipal Government was moved from the former HSBC Building, and the Shanghai Museum was also moved away from its previous site in a former office building. More recent additions include the Shanghai Grand Theatre and the Shanghai Urban Planning Exhibition Hall.

Other parts of the race course still remain today. The clubhouse buildings became the Shanghai Art Museum, while part of the race track became People's Park, a public park.

People's Square is a large public square in the Huangpu District of Shanghai, China. People's Square is the site of Shanghai's municipal government building, and is used as the standard reference point for measurement of distance in the Shanghai municipality.