The park was built and is based on a dam lake, Bennett Lake, built by the Civilian Conservation Corps (CCC) located at nearby Camp Halsey and Works Progress Administration (WPA) beginning in 1933.

[2] Originally, the land was a homestead by the Woolly family, and a restored cabin is on the property.

The CCC and WPA built a dam and lake, and it was used for watershed research.

The park features 40 camp sites and a bathhouse.

Woolly Hollow State Park is home to the Huckleberry Trail, completed in 1935 by the CCC, the trail circles Bennett Lake.