Mitchell was named in 1873 for John Hipple Mitchell, a former U.S. Senator from Oregon. In 1884 the town of Mitchell suffered a raging flood. Water rushed over the bluff above the community, carrying boulders and mud. The town was rebuilt. The community has an Old West ambiance with part of the town situated on bluffs above the lower part.

Mitchell is known for its spectacular geologic features such as large rock outcrops that tower near town. The town has a community hall heated by a wood stove, a city park adjacent to Bridge Creek, a century-old mercantile, a twisted juniper furniture shop and other downtown businesses. A live bear housed in a large cage in the heart of the downtown attracts many visitors.

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