This community has a long history that goes back to the first days of logging and commercial fishing on the North Shore. In fact, the first recorded American total-loss shipwreck on Lake Superior occurred at the mouth of the Knife River in 1838. The village was also an important stop for both of the major railroads that used to serve the area.

Today, Knife River remains a quiet village, but visitors and residents alike enjoy a public beach, restaurant, and excellent fishing. In addition, the Knife River Marina is a full-service marina operated by the Minnesota Department of Natural Resources.