[5] In 1901, after a race riot, Stroud became a sundown town, with a prominent sign warning African Americans not to stay overnight.

By 1909, Stroud had two banks, two newspapers, four cotton gins, and a cottonseed-oil mill, but the 1910 census showed population declined to 1,220.

[5] On March 27, 1915 Stroud became the victim of a legendary outlaw: "Henry Starr, along with six other men, decided to rob two banks at the same time...

When construction of the highway was completed, Stroud became a rest stop with amenities such as motels, gas stations and restaurants.

The Rock Café, built during the Great Depression using local sandstone removed during the construction of Route 66, operated 24 hours a day during its 1950s heyday.

In 2001, Pixar crews visited to research US 66 for the animated film Cars, at a time when the town economy was still attempting to recover from the 1999 tornado, and the Rock Café was undergoing historic restoration.

The character of Radiator Springs hotelier Sally Carrera is heavily based on Rock Café proprietor Dawn Welch and her efforts to promote and rebuild the town.

Currently, Stroud is enjoying recovery due to increased economic activity in the oil and gas sectors, and is home to Service King, a manufacturer of oilfield workover rigs.

International tourists are frequently found travelling historic U.S. 66, the main street of Stroud's downtown area.

[5] The Sac and Fox national headquarters is located about 5 miles (8.0 km) south of the city and is one of the area's largest employers.