Lovelady was founded by investors of the Houston & Great Northern Railroad as a railway line was built through a land grant of Cyrus Lovelady, near the communities of Nevil's Prairie, Pennington, and Weldon.
The Porter Place Ranch at Lovelady, founded in 1912 by V. H. "Hoyt" Porter, is the setting of many prized photographs by Porter's son-in-law, Guy Gillette, who spent many summers at the ranch with his wife, Doris Porter Gillette, and their two sons.