The community started forming not long after the Cherokee Outlet opening on September 16, 1893. A post office was established November 30, 1894, and town was named Terlton for a member of the first territorial legislature, Ira N. Terrell. The Arkansas Valley and Western Railway later the St. Louis and San Francisco Railway) built through town in the 1902-1903 timeframe, and Terlton developed into a trade center for the local agricultural industry. Oil was discovered in the vicinity about 1914, and oil-related industries like pipelines, tank farms and refining supported the town into the 1930s. In more recent years, Terlton has become a commuter town whose residents work in other locations and commute back to Terlton to live.