The quaint town was established in 1835 as a way station for Chicago travelers on the historic Vincennes Trail. Many of the first settlers were tavern and general store keepers, blacksmiths and wagoners. Blue Island's early industry was lodging and livestock trading.

By 1858, German settlers had established four breweries in the growing city, and in the 1870s, the Rock Island Railroad marked the beginning of Blue Island's transformation into a trade hub.

Blue Island's early 20th century history was dominated by heavy industry-food processing, oil refining, brick making and railroads. In the latter half of the century, much of the city's heavy industry was replaced with service and retail businesses.

Blue Island is a rich, historic city where friendly people do business, raise families and display pride in their community.