Underwood is a city in Otter Tail County, Minnesota, United States.

[6] According to the United States Census Bureau, the city has a total area of 0.58 square miles (1.50 km2), all land.

[8] Underwood is located between Fergus Falls and Battle Lake on Minnesota State Highway 210.

There were 180 housing units at an average density of 310.3 per square mile (119.8/km2).

The racial makeup of the city was 99.4% White, 0.3% African American, and 0.3% from two or more races.

32.1% of all households were made up of individuals, and 15.1% had someone living alone who was 65 years of age or older.

30.3% of all households were made up of individuals, and 20.4% had someone living alone who was 65 years of age or older.