Cottonwood is a city in Lyon County, Minnesota, United States.

[6] According to the United States Census Bureau, the city has an area of 1.04 square miles (2.69 km2), all land.

Minnesota State Highway 23 serves as a main route in the city.

As of the 2020 census and the 2022 American Community Survey,[6] there were 1,149 people and 492 households in the city.

There were 543 housing units at an average density of 522.1 per square mile (201.6/km2).

29.0% of all households were made up of individuals, and 10.7% had someone living alone who was 65 years of age or older.

26.1% of all households were made up of individuals, and 11.1% had someone living alone who was 65 years of age or older.

On February 19, 2008, a minivan ran through a stop sign in Cottonwood and struck a bus carrying students from Lakeview Public Schools, causing the bus to fall onto a pickup truck, killing four students and injuring 17 others.

The driver, Olga Franco del Cid, was later convicted of a total of 24 charges related to the crash and sentenced to 12 years in prison.