In 1878, the area consisted of a number of ranches and at least two businesses: Himley's Ferry (which allowed crossing of the Yampa River) and Peck's Store (a one-room trading post).

In the 1970s and early 1980s, the largest power generation plant in Colorado[10] and several coal mines were constructed near Craig.

At the 2020 United States census, the city had a total area of 3,246 acres (13.138 km2), all of which was land.

Summer days are hot with cool nights and very high diurnal temperature variation, while winters are cold and snowy with lows near zero.

[15] As of August 2024[update], the Colorado Department of Transportation (CDOT) is studying state-run passenger train service between Denver and Craig via Winter Park and Steamboat Springs.

Scheduled passenger jet airline service is available at the Yampa Valley Airport, located near the town of Hayden, 15 miles (24 km) east of Craig.

[18] Craig is, according to the local chamber of commerce, "Elk Hunting Capital of the World".