Barangay Banaba is also part of the North District Division of Barangays in Tarlac City. It is bounded by Barangay Balibago 2nd on the North, Barangay Batang-Batang on the Southeast, Barangay Trinidad on the South, Barangay Balibago 1st on the Northwest and Barangay Buhilit on the Southwest.

It is approximately 5.9 kilometers away from city proper. It has a total land area of 226.37 hectares wherein 82.5 hectares designate the agriculture and 143.87 hectares corresponds to a residential area. It is also divided into 6 purok namely Purok 1, Purok 2, and Purok 3 to Purok 6.

Barangay Banaba classified as Rural Barangay, it has a total population of seven hundred seventy one (771) as of 2005, and a household population of one hundred twenty six (126).

Barangay Banaba is an agricultural barangay. Farming is one of the major sources of livelihood. Approximately 70% of the total populace here were farmers. They cultivate palay, corn, vegetables and calamansi. Other residents were employees, labores, construction workers and so on.

Before it developed into a barangay and a residential area, Barangay Banaba used to be a forested area wherein in different kinds of trees and plants grew. According to the early settlers of this barangay, this place use to be forest covered with a vast number of trees particularly, Banaba tree. The tree serves as herbal medicines for many kinds of deseases. It was from this tree were the name barangay was derived. Before it may establish a new barangay, Barangay Banaba was just a sitio of Barangay Trinidad. It was called sitio Banaba.the population of the barangay grew rapidly which caused its people to file a resolution calling for the separation of sitio Banaba from their mother barrio barangay Trinidad. In the year 1967, the resolution was approve; hence, the sitio was convert into Barangay Banaba. Mr. Sabelo Tiqui is elected as first its barangay captain.

Among the pioneering families who settled in this barangay were the Tiqui, Mercado, Valencia, Deogracia, Garcia, Aquino and Fajardo family.

Ninety percent of the total populations are Pampango, and the rest are Tagalog, Bisaya, Pangasinense, and Ilocano.

Barangay Banaba celebrates their feast day every May 4-5 as a thanksgiving to the patron Saint Christ.