It lies at the intersection of State Highway 6 and Farm-to-Market Road 413, nine miles (14 km) southeast of Marlin.

Reagan was established in 1873, shortly after the Waco and Northwestern Railroad completed the section of track between Bremond and Ross.

A post office opened that year, as well, and was named for William Reason Reagan who donated the land for the townsite.

[2] Transitioning from a rail stop to agriculture during the 20th century Reagan saw most of its businesses move to the nearby county seat of Marlin.

[3] Despite the small population and being an unincorporated community, Reagan is the home to the Texas Pneumatic Tools Company.