The town is one of the main entry points into Quetico Provincial Park and promotes itself as the "Canoeing Capital of Canada".

In 1859, Simon James Dawson was hired to begin the route, but the plan was held up due to poor economic conditions in the east.

[5] Tom Rawn and his wife, Mary, were the first residents of Atikokan of European descent, arriving by canoe in 1899.

Rawn was lured to Atikokan by both the allure of gold in the area and because of plans by the Canadian Northern Railway to build a divisional point.

Within a year of moving to Atikokan, Tom Rawn built the Pioneer Hotel, which had 18 rooms on its second story.

The first businesses in Atikokan could buy lots on Main Street for $10 an acre, but the prices soon skyrocketed to $100 per square foot.

Nothing was done until the winter of 1929–1930, when Julian Cross started interviewing iron and steel companies to try to unlock Steep Rock's potential.

][full citation needed] described the aftermath as "gigantic, half burned dead pines, which, towering in the air, add so much to the wildness and desolation of the scene" and "too often caused by the carelessness of explorers, prospectors, and hunters; The Indians are very careful to extinguish their fires during the dry season ... it is regretted that the fatal carelessness of the others cannot be checked."

[5] Before the 2nd World War, mineral exploration in the area determined the presence of a large, high grade, iron ore deposit at the bottom of Steep Rock Lake.

After the war a large water diversion project on the Seine River system was undertaken to enable the draining and dredging of Steep Rock lake in order to develop open-pit mining operations.

When the mines closed in the early 1980s the town of Atikokan suffered economically but continued to survive on natural resource-based industries and tourism.

In 1994, a 10 megawatt hydroelectric generating station (Valerie Falls Power) was developed on the Seine River diversion that had facilitated the opening of the mines 40 years earlier.

[9] On February 1, 2013, Resolute Forest Products announced its plans to develop a new single-line random-length sawmill located in the Atikokan area, to be operational in 2014.

[10] The plan would create 90 direct jobs in Atikokan, with the additional benefit of supplying residual forest products to nearby pulp and paper mills.

[27] The Sapawe lumber mill located approximately 30 km from Atikokan reopened under management of Resolute Forest Products.

A revised environmental assessment was approved in 2018, building on work by previous owner Osisko Mining Corporation.

Atikokan was selected as the host site for the 2003 edition of 'Raid the North Extreme', a televised 6 day multi-sport expedition race that visits wilderness locations across Canada.

The resulting modern facility was named the Atikokan Recreation & Wellness Centre which features a 14,580 square foot ice surface, 25 meter long pool, and multi-purpose room with adjoining kitchen available for private rentals.

Mount Fairweather opened in 1967 for downhill skiing and snowboarding and continues to operate weekends and holidays from December to March (weather permitting).

The chalet has helmets, boots, and skis available for use for free on a first come first served basis and also offers a canteen, washrooms, comfortable seating, and an outdoor sun deck.

[37] The Town of Atikokan also operates parks, playgrounds, three skating rinks, Bunnell Park Campground,[38] the Pioneer Club (a drop in centre for seniors[39]), toboggan hill (the previous location of the Mount Fairweather Ski Hill), and two baseball diamonds.

[41] Fitness facilities exist at the Atikokan Native Friendship Centre (ANFC) and Ironworks Gym.

[43] The Atikokan Centennial Museum has a collection of heavy equipment from early logging, mining and railroad days.