The architecture of the small city gives the impression that it once displayed a vibrant downtown; this is perhaps due to the once-booming railroad system that still rumbles through Cohutta.

The town emerged as a stop on the railroad from Cleveland, Tennessee, to Dalton, Georgia, and served as a transportation and commercial center for the surrounding farming areas.

According to local lore, the town was originally known as "Shakerag," from the rag would-be passengers would wave to stop trains passing through.

In the 1920s, the town had a bank and a hotel, as well a high school, and was frequented especially in summer by inhabitants of Chattanooga seeking cooler temperatures.

As recently as the late 1960s, Cohutta had a small supermarket, three smaller "sundry" stores, a feed and seed, and a hair salon.

Cohutta prides itself on the Red Clay State Historic Park that serves as a national Native American meeting ground, Cherokee memorial with a museum, and outdoor park and recreation center for visitors.

Since 2019, the Town of Cohutta has begun a revitalization of the historic downtown district to include family-owned small businesses and restaurants that have been successful even through the COVID-19 pandemic.