Founded in 1851 Greenwood was the first seat of Sebastian County. the town was named after Alfred Burton Greenwood, who served as judge in north west Arkansas counties at the time. the first courthouse was built out of logs. Another one was built in 1865 in the center of the public square. this one burned down in 1916 so the new one was built further south and the square was eventually made into a park.
Greenwood grew slowly but surely and by the outbreak of the civil war a few businesses had established themselves in Greenwood. And by 1889 the town had both a general store, a drugstore, a cotton gin,a a grist and saw mill two hotels, three doctors, three blacksmiths and seven lawyers.
In April 1968 a tornado swept thru the town and totally devastated it. Thirteen people died a lot of businesses and homes were destroyed. but thanks to the determination of the people of Greenwood the town was rebuilt and is today a the home of 7,100 people.