The community was named after Robert Rantoul, Jr., a U.S. representative from Massachusetts, and a director of the Illinois Central Railroad.

In the 1930s, Chanute Field grew, dominating the local economy as thousands of airmen were stationed there to train recruits.

Renamed Chanute Air Force Base after World War II, it was closed in 1993, but was partly reoccupied by the Octave Chanute Aerospace Museum, which was permanently closed on December 30, 2015, and the Rantoul National Aviation Center.

The book Eye of the Storm: Chanute Closes by Katy B. Podagrosi tells the story of this period.

It also serves as home field for the University of Illinois "Fighting Illini" men's lacrosse team.

Bus service in Rantoul is provided by Champaign County Area Rural Transit System (C-CARTS).

Amtrak Train 391, the southbound Saluki, is scheduled to depart Rantoul at 11:10 am daily with service to Champaign-Urbana, Mattoon, Effingham, Centralia, Du Quoin, and Carbondale.

Amtrak Train 390, the northbound Saluki, is scheduled to depart Rantoul at 10:27 am daily with service to Gilman, Kankakee, Homewood, and Chicago.