Serving as the northwestern terminus of the Red Line, it is the most distant Metro station from downtown Washington, D.C., in Maryland.

Much of the surrounding area is industrial or low-density residential in nature, although Rockville Road to the south contains strips of commercial activity.

Prior to the opening of the Silver Line Extension to Ashburn, it was also the most distant Metro station (by straight-line distance) from the Washington Monument.

[citation needed] In order to cope with increasing population growth and subsequent traffic congestion while combating urban sprawl, the Montgomery County Planning Department released the Shady Grove Sector Plan, which aims to act as a guideline for mixed-use growth around the station.

[3] In 1967, during the initial planning for the Washington Metro, it was nearby Germantown and not Shady Grove was considered for the western terminus of the Red Line.

[12] The station has one island platform located west of the CSX Metropolitan Subdivision tracks, which carry Amtrak and MARC Trains.