It is 17 miles (27 km) north of Greenville in north-central Hunt County, and was settled in the 1860s or 1870s, when J. Pinckney Wolfe built a mill near the banks of Oyster Creek.

[7] Wolfe City is located near the northern border of Hunt County.

State Highway 34 runs through the center of town as Santa Fe Street, leading northeast 21 miles (34 km) to Honey Grove and south 17 miles (27 km) to Greenville, the Hunt County seat.

State Highway 11 crosses Highway 34 in the northern part of Wolfe City, and runs northwest 23 miles (37 km) to Whitewright and southeast 13 miles (21 km) to Commerce.

[7] As of the 2020 United States census, there were 1,399 people, 451 households, and 286 families residing in the city.