The city was home to a Civilian Conservation Corps camp during the Great Depression and undertook several civic improvements in the post-war years.

[5] Following the discovery of a rich gold vein along the Sultan River, the land around the confluence was claimed for a homestead by John Nailor and his wife in 1880.

[11] The Great Northern Railway placed a supply depot for its railroad workers in Sultan in 1891, meeting river steamboats and contributing to the town's early growth.

[17] An economic slowdown after World War I led to a population decrease in the Skykomish Valley, causing Sultan voters to approve a reduction in the city's size in June 1920.

[9] The area was home to various illicit industries during the Prohibition era and experienced several major crimes, including the murder of town marshal Percy Brewster on March 2, 1927, by a serial robber who later escaped from prison before being re-captured.

[18][19] The area also experienced an economic downturn during the Great Depression and was home to a Civilian Conservation Corps camp that primarily dealt with firefighting and forest management.

[22] Sultan residents participated a civic improvement program during the 1950s and 1960s that upgraded or replaced several major facilities, often with assistance from the state government.

[26][27] Musical acts at the festival included Santana, the Grateful Dead, Country Joe McDonald, Muddy Waters, Buffy St. Marie, and John Fahey, among others.

[28] The Sultan city government declined to allow the festival to return the following year due to the traffic and logistical issues that were experienced, including the venue running out of drinking water.

[29] Several suburban subdivisions were built in the 1990s and early 2000s, contributing to a population boom and political strife over the area's rural and small-town character.

[30][31] The Department of Veteran Affairs considered the Sultan area for a new national military cemetery, but ultimately chose a site near Kent.

[33] Despite the population growth, the city's traditional businesses have left Sultan and caused a decline in local employment options.

[35] The Sultan city government instead began outsourcing its policing and library services to county agencies while undergoing other reforms.

[36][37] The city government has endorsed schemes to lure new industries, including offering tracts of land and opening new parks and a shooting range in a bid to appeal to outdoor recreation companies.

[40][41] U.S. Route 2 and the BNSF Railway's Scenic Subdivision bisect the city from west to east, connecting it to Everett, Monroe, Gold Bar, and Stevens Pass.

[54] The city government has made various preparations for additional population growth, including new connections to the Spada Lake water supply to supplement its own system.

[65][66] The local police department was disbanded in 2008 and transitioned to services from the Snohomish County Sheriff's Office for public safety.

[62][68] The library was formerly operated by the city government, but was annexed into the Sno-Isle system in March 2008 due to a potential shutdown caused by the budget shortfall.

[75] The city hosts an annual three-day street fair in July, known as the "Sultan Shindig", which was established in 1983 and attracts 20,000 visitors.

[78] The celebration also honors the history of the Skykomish Valley by holding several logging contests, including axe throwing, firewood chopping, speed climbing, and wood sculpting.

[84][85] Traveler's Park on U.S. Route 2 features a tree round from a 1,000-year-old Douglas fir that was donated to the city government in 1976 by a local logging company.

[94] The Sky Valley Historical Society maintains a small local museum in the city's post office building in downtown Sultan.

[95] Sultan is connected to nearby communities by U.S. Route 2 (US 2), which runs east–west along the Skykomish and Snohomish rivers from Everett to Eastern Washington via Stevens Pass.

[42][96] The highway carries daily average of approximately 18,000 vehicles through Sultan, with higher volumes during summer months and ski season.

[97][98] Due to its high rate of accidents, including more than 2,600 in the county in the early 2000s and 100 within Sultan city limits from 1999 to 2000, the highway is considered one of the most dangerous in the state.

[99] Sections of US 2 near Sultan were rebuilt to add safety features, including roundabouts, rumble strips, warning signage, and additional policing.

[101] The BNSF Railway's Scenic Subdivision also runs along U.S. Route 2, connecting Everett to Eastern Washington and also carrying Amtrak's Empire Builder train.

[42] The highway and railroad cross over the Sultan River on a pair of truss bridges, while a third is planned to be built for pedestrians and bicyclists.

[105] The PUD operates the Culmback Dam north of Sultan, which generates electricity for the region and also provides 80 percent of Snohomish County's water supply.