Highways 2 and 41 run concurrently through the city, connecting it to various other communities in the Upper Peninsula of Michigan.

Gladstone was first settled by European descendants in 1859 when the Hamilton Corporation of Fayette began using it as a shipping port for selling and transporting iron ore.[5] The earliest development was located along Saunder's Point, a small peninsula extending into Little Bay De Noc.

[6] Throughout the 1860s and early 1870s, Gladstone expanded to become a shipping point for lumber, coal, and copper, in addition to iron ore.[citation needed] In 1876, the mine operated by the Hamilton Corporation was depleted, and the company moved their operations to a new mine further south.

Gladstone's role shifted to that of a rail hub, as Arthur Delano, the president of Soo Line Railroad, had commissioned a train depot built in Saunder's Point during the previous winter to start land shipping for the Hamilton Corporation.

[8] The town was originally named Minnewasca by the Soo Line Railroad, an Ojibwa word meaning "white water.

"[4] When the name was filed with the county and Secretary of State in Lansing, however, Senator W. D. Washburn, who had an interest in building the railroad, persuaded officials to change the name to Gladstone in honor of British Premier William Ewart Gladstone.

[10] Although Gladstone is a relatively small city, it has several distinct sections: Downtown (which hosts most of the local businesses), the Buckeye (located on the western side of the city, bordering the Brampton, MI township), and the Bluff (which hosts most of the new residential expansion, as well as Gladstone High School).

[citation needed] According to the National Weather Service, Gladstone's record low was -60 °F on January 7, 1896.

On July 19, 1992, Gladstone experienced a rare tornado which caused moderate damage throughout the city.

[citation needed] Gladstone is often referred to as "The Year Round Playground" because of its myriad of parks and activities.

[citation needed] Van Cleve Park hosts a playground (Kid's Kingdom), a skateboarding park, baseball field, basketball court, fitness trail, a white sand beach with a water slide, boardwalk, as well as a harbor with boat ramps and a fish cleaning station.

The Park itself is often rented out for other activities, including wedding receptions, and high school graduation parties.

Gladstone hosts the Days River Trails, which are hiked and biked in the spring, summer, and fall.