Izmailovo was founded in 1845 near a wool factory owned by landowner Y.F. Pribylovsky. From 1885, the factory was owned by N.Y. Shatrov. After the 1917 revolution, the factory was named after Y.M. Sverdlov.

By the beginning of the 20th century, the Simbirsk province was one of the largest producers of wool in Russia. There were 18 factories here, which ranked second in the country in terms of production volume, third in value and number of looms, and first in the Volga region. In terms of production volume, the province was surpassed only by one or two other provinces in Russia, and by the number of workers, only by Moscow, until 1917. All factories were located in rural areas, and five of them, with more than 500 workers, were considered large. These factories were equipped with modern equipment, mostly of foreign manufacture. The Izmailovo factory was the first in the province to completely replace manual looms with automatic ones.

The factories produced coarse woolen fabrics, mainly for the army: overcoats, caps, trousers, as well as blankets for state institutions. Unlike other regions of Russia, a full cycle of wool production was carried out here, from cleaning and washing wool to manufacturing and finishing. The finished products were supplied under contracts to various supply departments, such as Siberian, Syzran, Kazan, and Moscow. The Izmailovo factory was renowned for its high-quality fine woolen fabrics, made from merino, ordinary, and camel wool, which were sold in the western and southern regions of Russia, as well as in Vladivostok and Port Arthur, from where they were sent to China. At the Nizhny Novgorod Fair, these fabrics received commendations. Through intermediaries, the products were exported abroad, including army fabrics. In the early 20th century, Turkish soldiers wore uniforms made from fabrics produced in the Simbirsk province. All woolen factories in the province were nationalized on October 15, 1918.

In the village of Stara Izmailovka, there is a cultural heritage site of regional significance, the Kazan Church, built in the early 19th century.