The community was founded in 1884 by Hilory G. Bedford, president and controlling stockholder in the Wichita and Brazos Stock Company.

[6][7] To attract additional settlers, Bedford gave his stockholders a 50-acre tract of land and set aside 40 more acres for a town square.

Benjamin was designed as the Knox County seat when it was organized in 1886; a school also opened in that year.

[6] Two structures in the community, a courthouse (1938) and school building (1942), were constructed with Works Projects Administration labor.

The number of inhabitants reached a high of 599 in 1940, but that figure slowly decreased during the latter half of the 20th century.

[8] According to the United States Census Bureau, the city has a total area of 1.0 sq mi (2.6 km2), all land.

Benjamin's Moorhouse Park, dedicated by the state highway department in 1965, and an area know the Narrows located four miles east of the city are also popular tourist attractions.