The area was first settled in 1872 as the threat of Indian raids began to wane. A post office was established in 1874 and a cotton gin in 1875. The Gainesville, Henrietta, and Western Railway passed south of Bulcher in present-day Muenster in 1887 and Bulcher began to decline. Oil was discovered nearby in 1926 and after a brief spike in population, it resettled around 250. By 1933, the population was 40. Farm to Market Road 373 traverses the city from east to west, and Farm to Market Road 2382 junctions with FM 373 just west of town.
Today, it is a popular area for self-guided foliage tours, as well as home to a 2500-acre (10 km²) off-road motorcycle park popular with riders from all over the United States. The park is host to the annual Last Man Standing rough-terrain motorcycle race.