The Michigan State Highway Department (MSHD) signed M-37 initially as part of the state trunkline highway system by July 1, 1919. This section of highway ran from Battle Creek to Grand Rapids, roughly along the modern routing. By 1929, the highway was extended north to Peacock in Lake County, replacing the contemporary M-54 in the process. A group of local leaders formed an organization to lobby for the completion of the highway in 1928 when state efforts to do stalled. The Grand Rapids–Leelanau Association named their roadway the Paradise Trail and promoted it as an alternative to both US 31 and US 131. They convinced local land owners to donate land to build the road. Backers named the road for the "divine scenic and recreational delights" in the area.