The camp was named for Major General William "Bull" Nelson, commander of the Civil War Army of Kentucky, who was murdered by a fellow officer in 1862.

[5] The cemetery was created in 1863 as a place to bury Union soldiers who died while serving in and around Camp Nelson during the Civil War.

[7] During June and July 1868, the remains of 2,023 Union soldiers were recovered from battlefield graves in Frankfort, Richmond, Perryville, London, and Covington;[4] then brought to Camp Nelson and re-interred with honor.

[4] The two-storey brick house with open entry porch was designed by Quartermaster General Montgomery C. Meigs in the Second Empire architectural style.

[11] Camp Nelson National Cemetery interred the remains of armed forces personnel and veterans who served in conflicts from the late 19th century until it closed to new burials in 1964.

[1][6] In 2010, an additional 21 acres (8.5 ha) of land was purchased from the Camp Nelson Civil War Heritage Park, located next to the cemetery and owned by Jessamine County.

[3] The purchase was made possible with a grant from the Department of Veterans Affairs' National Cemetery Administration and the co-operation of various local organizations.

[16] At the Memorial Day ceremony, a keynote speaker is typically part of the program, as is a local high school band, a bugler who plays Taps, and a cannon salute.

Represented units have included members from the re-enacted 54th Massachusetts Infantry, the all-black regiment that earned fame in the Civil War and fresh recognition from its depiction in the 1989 film Glory.

In the past, the cannon salute was fired by representatives from a U.S. Army Reserve or Kentucky National Guard artillery unit.

The ceremony has been augmented by a procession of a horse-drawn limber-and-caisson bearing an empty, flag-draped coffin, symbolic of the many military personnel who have died in the service of the country.

[18] These vaults protect the casket from being crushed, and are effective at preventing collapse of the surface of the grave due to soil compaction.

Caretakers also receive delivered headstones, set and align them at the head of the appropriate graves, and maintain the grounds; duties include cutting the grass, pruning trees, clearing the roads of leaves in the autumn and snow in the winter, preparing the funeral shelter for services, disposing of litter, and interacting with the public to answer questions or find graves.

After turning south toward Nicholasville (U.S. Route 27), follow that road for about 15 miles (24 km), and the cemetery will be on the left side, just before the bridge over the Kentucky River.