Bonanza is a city[3] in Sebastian County, Arkansas, United States.

It is part of the Fort Smith, Arkansas-Oklahoma Metropolitan Statistical Area.

Coal was discovered near the Arkansas-Oklahoma line about 12 miles southeast of Fort Smith, Arkansas.

Woodson filed a petition to incorporate, and on November 26, 1898, the town was chartered.

On April 27, 1904, around 200 residents congregated west of Bonanza to decide on and ultimately pass a resolution "demanding that about forty negroes employed by Central Coal and Coke Company leave town", which, if necessary, would be administered by force.

[6] On April 30, a gun battle between Black and white customers at a saloon escalated into a violent conflict consisting of armed white mobs directing gunfire into the homes of Black residents.

"[6] On May 7, the Arkansas Gazette reported, "No one wounded during the fusillade, but Negroes were terrorized and decided to leave", adding that "nearly all black residents had left the city" by that time.

[6] According to the United States Census Bureau, the town has a total area of 3.2 km2 (1.2 sq mi), all land.