Chronicled in the Treaty of Dancing Rabbit Creek (1830), the United States government gave a section of land to Peggy Trehan, a Choctaw Indian, and an adjoining section to John Donley, a White mail rider. All that separated the two sections was a survey line known as present day Line Street.
The original owners sold their sections to Franklin E. Plummer and Hiram G. Runnels. The two sections became known as Pittsburg and Tullahoma.Because of a bitter rivalry between the towns' residents, representatives met in 1836 in an effort to solve the problems. This meeting resulted in a plan to merge the two towns into one.
On July 4, 1836, a mock wedding ceremony performed by Rev. Abraham Lucas, a Methodist minister, joined a bride representing Tullahoma and a groom representing Pittsburg together to form a new town of Grenada. Some believe the town was named after Granada, Spain, and simply misspelled.
The city was once home to Grenada College, a Methodist junior college for women. Because of financial troubles, the church closed the college and transferred all assets to Millsap’s College.
James Meredith's 1966 "March Against Fear" arrived in Grenada on June 15. Civil Rights activists protesting racial segregation included Dr. Martin Luther King, Jr., Andrew Young, Ralph Abernathy, and many others. The group's demonstrations continued in Grenada for about one week.