The valley where Prairie Grove is located was settled in the later 1820's. The first white person to live there was Tom Wagnon and he settled by a spring. But in 1929 Reverend Andrew Buchanan came to Prairie Grove because he had heard of the spring. Tom Wagnon said that he would give the pastor the land in exchange for two good redemption sermons.
After receiving the land, Reverend Buchanan built a church by the spring and people started to settle in the area. The first post office was built in 1840 and was always referred to as Sweet Home post office. It was closed down and a new one, ADA Post office, was opened. It was first years later that the name Prairie Grove was come up with when a young girl died, and her parents wanted her to be buried in the cemetery in the, as they said, grove of trees on the prairie.
in 1865 one of the last important battles of northwest Arkansas took place here. It was a very bloody battle where more than 2,500 people died and was a mayor defeat for the confederacy.
The spring that the church was built by and where locals for a long time came to meet each other is where todays down town Prairie Grove is located.
The town was incorporated in 1888 and today it has a population of about 3,000.