[6] Bonifay was founded in 1882[1] when the Pensacola and Atlantic Railroad was built across the Florida Panhandle, and was named by P&A executive W. D. Chipley[7][failed verification] for Frank Bonifay, member of a prominent family who had a brickmaking factory in Pensacola, where the P&A was headquartered.

Frank Bonifay bought a stake in the P&A, which in 1891 was merged into the Louisville and Nashville Railroad, which after several more mergers became part of CSX Transportation in 1986.

Interstate 10 passes through the southern edge of town, with access from Exit 112 (Florida State Road 79).

[9] The climate for the City of Bonifay is characterized by hot, humid summers and generally mild to cool winters.

As of the 2020 United States census, there were 2,759 people, 1,116 households, and 664 families residing in the city.

As of August 2008, all educational facility improvements shall be done in a financially feasible manner to address all Level of Service (LOS) needs as described by the Public School Facilities Element in the City of Bonifay 2020 Comprehensive Plan, officially recognized by the state of Florida on September 3, 2008.

There are currently plans to extend the commercial zone areas of Bonifay south of Interstate 10 to the Washington County line.