Around 1873 the communities of New Chicago, Tioga, Chicago Junction and Alliance were merged to secure a railroad depot at the suggestion of the civil engineer who was surveying the railroad right-of-way and the city was named for him. In the 19th and early 20th centuries the city's economy was dependent on the railroad as it became a center for the shipment of grain, corn, potatoes and seed. Milling operations and an active livestock market also contributed to the ecomy of Chanute. Two amazing people came from Chanute, or rather we should say they spent time here in between their travels to Africa, Borneo, and the South Seas to photograph these lands and provide the world with a photographic record of unimagined magnitude and beauty. They used the most advanced motion picture apparatus of the day and around 1931 produced the first sound movie ever made in the heart of Africa. The Safari museum in Chanute is dedicated to them and their work as well as exhibiting collections of African artifacts contibuted to the museum.

SR 39 does a wiggle through Chanute before meeting up with US 169 on the Western side of town.