It was started by European Americans as a steamboat landing and lumber town with a sawmill, after the railroad was constructed through this area in 1901.

It was named for Joseph Beaudette, a trapper of French-Canadian descent who had been in the area since the early 1880s.

Baudette had a station of the Minnesota and Manitoba Railroad, now absorbed by the Canadian National Railway.

Highway 11 leads northwest 36 miles (58 km) to Warroad at the southwest end of Lake of the Woods and east 68 miles (109 km) to International Falls, while Highway 72 leads south 76 miles (122 km) to Blackduck and Highway 172 leads north 12 miles (19 km) to Wheelers Point at the mouth of the Rainy River into Lake of the Woods.

[8] Baudette has a humid continental climate (Köppen Dfb) with mild to warm summers along with dry and severely cold winters.

39.7% of all households were made up of individuals, and 18.2% had someone living alone who was 65 years of age or older.

41.0% of all households were made up of individuals, and 22.2% had someone living alone who was 65 years of age or older.

Baudette was home to Rowell Laboratories, Inc., a manufacturer of pharmaceutical products, from 1935 to 1986.

Rowell initially achieved success by processing and selling burbot liver oil, after it was discovered to improve the fur of foxes living in the Rowell family fox farm.

[citation needed] Rowell's downtown location is now home to ANI Pharmaceuticals Inc.