Lone Mountain State Forest was created from a land donation by the Lone Mountain Land Company in 1938 and a large land purchase by the Morgan County Chancery Court the following year. Lone Mountain was managed as part of Morgan State Forest until 1970, when it became an independent state forest. The State Forestry Division managed Lone Mountain with a hands-off approach to allow the forest to recover from damage caused by the Lone Mountain Land Company. Timber harvests within the forest are therefore relatively rare.