The land in this area was included in a Mexican land grant awarded to Nathaniel Townsend in 1838. Portions of the grant were sold to a succession of different people over the years, and in 1885 August Heintze and Gus Steenken, both natives of Oldenburg, Germany, founded a community and named it after their hometown.
The majority of the settlers in this area were immigrants from Germany and Bohemia. At its height Oldenburg boasted homes, farms, and a number of businesses and institutions, including stores, saloons, a cotton gin, tin shop, doctors' office, blacksmith shop, post office, church, dance halls (festplatz), and schools.
The first school in the community was known as the German and Bohemian Oldenburg School. Founded in 1898, it was succeeded in 1922 by Oldenburg Common School District No.5. A separate school for black students opened about 1930. By 1944, both schools were consolidated with the Fayetteville School District.
Descendants of early German and Bohemian settlers continue to reside in this vicinity.