Welcome was incorporated, first as a village, on May 7, 1890, and named after homesteader Alfred M. Welcome, who owned a farm on what became the city's southwest side.

[5][6] A local newspaper, The Welcome Times, circulated in town from 1895 through 1969 before being merged with the Sherburn Advance-Standard.

120th Street, former U.S. Route 16, passes along the southern edge of Welcome and connects it with the two other cities.

Interstate 90, also traveling east-west, passes just north of Welcome, with access from Exit 93.

Minnesota State Highway 263 passes through the east side of Welcome as Guide Street, leading south 10 miles (16 km) to Ceylon.

According to the U.S. Census Bureau, Welcome has a total area of 1.46 square miles (3.78 km2), all land.

32.6% of all households were made up of individuals, and 14.8% had someone living alone who was 65 years of age or older.

31.0% of all households were made up of individuals, and 16.1% had someone living alone who was 65 years of age or older.