Morgantown is a home rule-class city in, and the seat of, Butler County, Kentucky, United States. The population was 2,394 at the time of the 2010 census.The settlement may have originally been called Funkhouser Hill after Christopher Funkhouser, the local landowner who donated 60 acres of land to establish a seat for the newly formed Butler County in 1811. The etymology of the city's present name is uncertain. It may have been chosen to honor a hunter named Morgan or to honor Daniel Morgan Smith, the first white child born in the town. It was incorporated as Morgantown by the state assembly in 1813, although the post office also went by the name Butler Court House during the 19th century.Granville Allen, a member of the 17th Kentucky Infantry, was one of the first Union soldiers to die in the Civil War, in a skirmish on October 29, 1861. A monument was erected by the Granville Allen Post #93 GAR.