Muskoda received its name from the Ojibwa word Mashkode, which according to Baraga means "a meadow or tract of grassland, a large prairie." The townsite was originally on a line of the Northern Pacific Railroad until that railroad moved its line to a more gradual grade, leaving Muskoda about one half mile off the new line. The town had a post office from 1873 until 1930, and also at one time had a general store, a grain elevator, and a potato warehouse. Little trace of the town remains today.
- Upham, Warren (2001). Minnesota Place Names, A Geographical Encyclopedia, 3rd Edition. Saint Paul, Minnesota: Minnesota Historical Society. p. 123. ISBN 0-87351-396-7.
- "Clay County". Jim Forte Postal History. Retrieved 3 April 2015.
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