Sioux Lookout is also a key airport hub for numerous northern and Indigenous communities in Northwestern Ontario and remains a service stop for The Canadian, a transcontinental passenger train operated by Via Rail, and a busy railway junction for the northwestern Ontario segment of Canadian National Railway's transcontinental Class 1 railroad.

During the summer months, Sioux Lookout's population rises as tourists, mostly American, arrive to take advantage of the multitude of lakes and rivers in the area.

Being able to scan the surrounding area for some distance enabled the Ojibwe men to potentially detect any approaching Sioux warriors, with sufficient time to guide the women and children to safety before intercepting the enemies.

From Sioux Mountain, a careful eye could catch the sun reflecting off of birch bark canoes crossing the nearby rapids.

Illustrating this old story on the front page of the local newspaper, The Sioux Lookout Bulletin, is an iconic image of a First Nations man, holding a hand above his eyes as he scans the water and surrounding terrain.

From circa 1933 to 1937, the Hudson's Bay Company operated a fur-trade post at the town along the English River near the north shore of Minnitaki Lake.

[4] During the Cold War, from 1952 to 1967, CFS Sioux Lookout, 6.0 km (3.7 mi) west, was a radar base forming part of the Pinetree Line to monitor any activity from the Soviet Union.

However, more significant demographic and employment changes took place around the time of the global financial crisis and recession of 2008-09; notably, the permanent closure of the lumber mill in Hudson, along with the construction of a newer, larger healthcare complex (the Meno Ya Win Health Centre), saw several shifts in the local workforce.

Urban Sioux Lookout looks-out on Pelican Lake, and the municipality has initiated a lakefront improvement program to beautify this area.

Tourism makes a significant contribution to the local economy, however, there is far more capacity for development, and the area's potential is only starting to be recognized fully.

The boundaries of Sioux Lookout were significantly expanded on 1 January 1998 to include a number of unorganized geographic townships surrounding the town itself.

[11] Sioux Lookout experiences a humid continental climate (Dfb) with long, cold winters and short, warm summers.

[2] As an ethnically diverse community, Sioux Lookout has a large Indigenous population (2,090 people, 1,885 First Nations and 190 Métis) along with a smaller number of individuals from all over the world.

Mayor Doug Lawrance leads a council of Joe Cassidy, Cory Lago, Joyce Timpson, Joan Cosco, Luc Beaulne, Reece Van Breda.

The festival includes a number of sporting events (slo-pitch, beach volleyball, bocce, tennis, and golf tournaments) along with charitable fundraisers, blueberry themed food, historical walks, musical performances including the Sioux Mountain Music Festival, a car and truck show, a farmers' market, and much more.

Her book, edited by James R. Stevens, takes place in the two railroad towns of Fort William and Sioux Lookout in pioneer times.

Sioux Lookout is also a feature in Paulette Jiles' novel North Spirit: Travels Among the Cree and Ojibway Nations and Their Star Maps published in 1995 by Doubleday Canada.

The Sioux Lookout Cultural Centre for Youth and the Arts is under construction and will include a recording studio for aspiring local artists.

[25] Ryan Parent, first round National Hockey League (NHL) draft pick and two-time IIHF World Junior Championship champion, was raised in Sioux Lookout.

Ryan Parent officially joined the NHL when he was recalled from the Flyer's American Hockey League (AHL) affiliate team the Philadelphia Phantoms on 13 February 2008 and took a place on the roster.

New residential zones have been created in response to Sioux Lookout's continued population growth (which is one of the highest rates in Northern Ontario).