Several millennia later, the final known indigenous settlement in Oak Forest, a Potawatomi longhouse village, was established nearby.

[5] The origins of present-day Oak Forest begins with a railroad whistle stop on the Chicago, Rock Island and Pacific Railroad 1 block south of the intersection of 167th street and Central Avenue which primarily served area dairy farmers.

This stop was located in a largely forested area of what was previously known as the Cooper's Grove Stand of Timber.

A section of the former "Cooper's Grove Road" paralleling the railroad track from 66th Court to 167th Street in Tinley Park became known as "Oak Forest Avenue", because it was the road from the Village of Bremen/New Bremen (now Tinley Park) that lead to this "Oak Forest".

This location was very near the Rock Island railroad and a new railroad station was constructed northwest of the present day intersection of 159th Street (US Route 6) and Cicero Avenue (Illinois Route 50), which provided convenient rail access to the facility.

Shortly after its opening, the facility accommodated close to 2,000 people suffering from poverty, mental illness, alcoholism, and other problems.

Christian Goesel and several relatives settled near 147th and Oak Park Avenue (then Bachelor's Grove Road) beginning in about 1861.

In 1884, the Goeselville post office was established (replacing the East Orland Post Office) to continue to serve the small settlement in that general vicinity (which had previously been part of the larger area of the earlier Batchelor Grove settlement).

Although that post office has been closed for over 100 years, the Goeselville name occasionally continues to be found on current maps.

On August 10, 2020, an EF1 tornado touched down in Oak Forest and caused significant damage to portions of the city.

Extensive tree damage and long lasting power outages affected most of Oak Forest north of 155th Street.

Some neighboring communities of Oak Forest include Crestwood to the north, Midlothian to the northeast, Markham to the east, Country Club Hills to the southeast, Tinley Park to the southwest, Orland Park to the west, and beyond Bachelor's Grove Cemetery and Forest Preserve is Palos Heights to the northwest.

A portion of Oak Forest west of Ridgeland Avenue feeds into Victor J. Andrew High School.

A small portion of Oak Forest feeds into Carl Sandburg High School.

Pace (transit) bus route 354 runs from Harvey down 147th and Central Avenue through Oak Forest to Tinley Park.

In spring 2005, Mayor Patrick M. Gordon with the assistance from ZPDA, Baxter and Woodman and city staff announced plans for a "Gateway Project", consisting of a mixed-use commercial and residential development at the corner of Illinois Route 50 (Cicero Avenue) and 159th Street.

The development was promoted by the mayor as greatly enhancing the tax base of the city and generating additional commercial interest in the Cicero Avenue Corridor.

[16] In 2008, the city broke ground on the Gateway Development at the northwest corner of 159th Street and Cicero Avenue.

Construction of the mixed-use development will bring more than 50,000 square feet (5,000 m2) of new retail and restaurant space and approximately 80 residential units to the city.