Early settlers were drawn to the area by the native timber, which is still a very important part of Sheridan's economy, although the city has diversified into several other industries.

[6] Lieutenant-General Philip Sheridan, for whom the community is named, served as the 8th Commanding General of the United States Army from 1883 to 1888.

[7] A religious university, Missionary Baptist College, opened in the community in 1917 and closed in 1934 due to financial circumstances resulting from the Great Depression.

[9] In 1943, Jewell Williams, a Jehovah's Witness, was convicted in the Mayor's Court for selling Bibles without a permit under Sheridan City Ord.

Williams joined other members of his faith and appealed similar convictions occurring across the state to the Arkansas Supreme Court in Berry v. City of Hope, challenging the city ordinance as unconstitutional under the First Amendment.

[10] The "Mighty 1090" KAAY radio station sponsored the Rebel Springs Rock Festival of 1973 5 miles (8 km) east of Sheridan on Highway 270 that included ZZ Top as a headliner.

Local property owners attempted to get a court-ordered injunction to halt the festival from talking place, on the legal theory of nuisance, but to no avail.

Black residents had no choice, for Williams told them that "if a family refused to move, he would evict them and burn down their home.

Loewen's research describes the fact that "no Sheridan resident lifted a voice to protest the forced buyout of its black community" and a "reputation for bigotry when their high school played interracial teams in athletic contests.

As of the 2020 United States census, there were 4,920 people, 1,884 households, and 1,235 families residing in the city.

As of the 2010 United States census[17] of 2010, there were 4,603 people, 1,841 households, and 1,238 families residing in the city.

[19] Next, Jack Williams, the largest employer of African-Americans in the area, told Black families that they could accept his offer to buyout their homes and move them, or he would burn their houses down.

In response, a human rights organization held a rally on the State Capitol steps, and the principal received a petition with 30,000 signatures asking Williams to reverse the decision.

[22] Sheridan hosts an annual event based on the area's deep roots in the timber industry called Timberfest,[23] which includes a lumberjack competition and live music around the courthouse square.

The White River Kid, starring Antonio Banderas and Randy Travis, was filmed during a mock Timberfest during the summer of 1998, with many of the local residents appearing as extras.

The museum features exhibits detailing the Battle of Jenkins' Ferry, a segment of the Union's failed Red River Campaign during the Civil War, as well as a large World War II vehicle collection.

The Heritage Square is also on the museum grounds, featuring ten relocated and restored buildings.

Bales and Cleveland started the first newspaper in the Grant County area, titled The Sheridan Spy.

Sheridan's wastewater treatment facility is located at the end of Gatzke Drive and discharges treated effluent to Big Creek in accordance with the permit granted by the Arkansas Department of Environmental Quality.