Golden began to form as a community in the 1870s when C. W. Tucker built a saw mill. When the Missouri, Kansas, and Texas Railroad was built through the area in 1881 on its way from Greenville to Mineola, Golden was named for railway construction engineer John Golden. The Katy made a round trip from Greenville to Mineola each day and carried both passengers and mail. A school called Friendship was established around 1880, and by 1885 Golden had been awarded a post office. About 1907 a bank opened, and in 1914 the area got a newspaper named the Golden Rule. In 1911 the area voted in the first consolidation in the county to consolidate the Golden, Bellefonte, Cottonwood, and Ayers School Districts and to build a consolidated high school, which opened in the 1913-14 school year. In 1938 another first for the area came when R.E.A. electricity reached the Klondyke Community. In 1955-56 the Katy made its last run and the tracks were removed. In the 1956-57 school year the Golden School District voted to consolidate with Alba. Sweet potatoes have long been grown in the area, and each October residents celebrate the harvest and its financial benefits with the Golden Sweet Potato Festival.