Drag City is an American independent record label based in Chicago, Illinois, established in the city in 1989 by Dan Koretzky and Dan Osborn.

The label has featured numerous artists, including Bonnie "Prince" Billy, Bill Callahan, Joanna Newsom, and Silver Jews.

Drag City was formed in 1989 when Koretzky, who was working for a record distribution company in Chicago, contacted the band Royal Trux, after hearing their first album, with the offer of releasing a single.

[4] In recent years, they have expanded their catalog to include alternative comedy releases, with recent outputs from Fred Armisen, Neil Hamburger, and Andy Kaufman among others, and reissues, notably by Gary Higgins and Death.

[5][failed verification] In 1997, Drag City began publishing printed works such as the literary magazine The Minus Times and Neil Hagerty's novel Victory Chimp.