Wild turkeys discovered along a small creek gave this town the name of Turkey Creek, and the settlement that grew up there was known as Turkey Roost. The post office shortened it to Turkey. Several businesses and a $50,000 hotel were built with the coming of the railroad. The town was a shipping point for cattle, grain and cotton.

The Bob Wills Reunion is held on the last Saturday in April. The musician is recognized with a monument at the west end of Main Street. Although the city's population is small, crowds grow up to 15,000 during festival.