Sugar Grove was founded in 1837, when John Mast opened the Sugar Grove Post Office; that year he reported a revenue of $14. During the Civil War, Company E of the 37th Confederate Regiment was organized September, 1861. Between 1864-1865, the home guard battalion of Watauga was stationed at Camp Mast, nearby Sugar Grove. On February 5, 1865, Camp Mast surrendered, by majority vote, after being surrounded at dawn by a battalion of around 100 Union soldiers, led by Captain James Champion, of Indiana; those who voted for surrender were quickly paroled and discharged. In 1915, the first cheese factory in the area was established in Sugar Grove (unknown when closed).