Unlike many of the circles in Washington, Tenley's traffic pattern has evolved such that the dominant roadway, Wisconsin Avenue, can pass straight through the center instead of going around the outside circumference.

The circle is an important transportation hub for area residents, featuring stops for the Washington Metro's 31, 33, 96, H2, H4, M4, and N2 bus routes.

The Tenleytown–AU Metro station is one block north of the circle, where one is able to catch a free shuttle to the main campus of American University a little less than a mile away, as well as to the Spring Valley annex.

In 1902, as part of a report to the United States Senate Committee on the District of Columbia, the D.C. Park Commission proposed that a traffic circle be constructed at the junction of Wisconsin and Nebraska Avenues.

"[5] On May 27, 1927, the District of Columbia's Board of Commissioners voted to officially name the circle after eighteenth century local resident and tavern owner, John Tenley, who is also the namesake of the surrounding neighborhood.