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The citywas established in 1853. The city was home to approximately 1,950 people at the time it was incorporated in 1858. Jordan Jameson, an African-American man was executed in Magnolia's town square on November 11, 1919. After Jameson allegedly shot the sheriff, a large white mob took Jameson hostage. He was tied to a stake and burned alive. The city was a small agricultural market and a regional cotton market. Oil was discovered just east of the city in 1938 with the drilling of Barnett #1 by the Kerr-Lynn Company. The Magnolia Oil Field was a significant discovery for both the city and the country. It was the largest producing field in the early years of World War II. This helped to sustain the American war effort.
More than 5,000 barrels of oil were leaked from a Lion Oil Trading & Transportation storage container in Magnolia in March 2013. Some of it flooded into a bayou.
Magnolia is the home of the Magnolia Blossom Festival, and the World Championship Steak Cookoff. This festival attracts over 40,000 people and has been featured by Food Network. From late November to late December, a 'Festival of Lights" is held.
Magnolia is well-known for its central shopping area on the square, and its murals - one was signed by Charlton Heston.
