The route was originally designated in 1940 as the part of the highway from Grandfalls to Crane. The part of the route from Crane to Rankin was added to the designation in 1990, transferred from Farm to Market Road 870.
FM 870 was designated in 1948 from US 67 in Rankin northwest 8.8 miles to a road intersection. In 1951, FM 870 extended northwest 8.8 miles. In 1951, it extended 14.3 miles to SH 51 (now US 385). In 1990, it was cancelled.
Beginning at a junction with SH 18 at Grandfalls in Ward County, SH 329 runs east to a junction with US 385 at Crane in Crane County. In Grandfalls the highway is known as 1st Street; in Crane it is known as 6th Street. SH 329 then continues east and southeast to its final junction with US 67 at Rankin in Upton County. Most of the terrain covered by SH 329 is sparsely populated ranch and oil country.