The community was founded in 1900 and it takes its name from holly trees in the area. Prior to its founding, it had been called "Klondike". Its post office closed in 1974 when its longtime postmistress, Mrs Gertrude H. (Gertie) Langley, retired. Its mail now comes from nearby Arbyrd. Until the 1960s, there were four grocery stores, a cotton gin, grain elevator, and the Church of Christ. At one time there was a saw mill and lumber company. There was a jail. The town was well populated. The Frisco train made stops there. In the 1950s and 60s, the area was supported primarily by cotton farming. By 1975, the last grocery story had closed. In 2013, the Church of Christ closed its doors after more than 105 years.