The Hammond organ was originally marketed and sold by the Hammond Organ Company to churches as a lower-cost alternative to the wind-driven pipe organ, or instead of a piano. It quickly became popular with professional jazz musicians, who found it a cheaper alternative to the big band. Jimmy Smith's use of the Hammond B-3, with its additional harmonic percussion feature, inspired a generation of organ players, and its use became more widespread in the 1960s and 1970s in rhythm and blues, rock and reggae, as well as being an important instrument in progressive rock.

The Hammond Organ Company struggled financially during the 1970s as they abandoned tonewheel organs and switched to manufacturing instruments using integrated circuits. These instruments were not as popular with musicians as the tonewheels had been, and the company went out of business in 1985. The Hammond name was purchased by the Suzuki Musical Instrument Corporation, which proceeded to manufacture digital simulations of the most popular tonewheel organs. This culminated in the production of the "New B-3" in 2002, which provided an accurate recreation of the original B-3 organ using modern digital technology.