Monowi's was platted in 1903, when the Mason, Elkhorn and Missouri Valley Railroad was extended to that point. A post office was established in Monowi in 1902 and remained in operation until 1967.
Monowi's peak years were in the 1930s, when it had a population of 150. Like many other small communities in the Great Plains, it lost its younger residents to cities that were experiencing growth and offering better jobs.Â
During the 2000 census, the village had a total population of two; only one married couple, Rudy and Elsie Eiler, lived there. Rudy died in 2004, leaving his wife as the only resident in the village. In this capacity, she acts as mayor, and granted herself a liquor license. She is required to produce a municipal road plan every year in order to secure state funding for the village's four street lights.
Although the village is nearly abandoned, it does have a bar called the Monowi Tavern, operated by Eiler for passing travelers and tourists. In addition, Eiler maintains the five-thousand–volume Rudy's Library, founded in memory of her late husband.
In 2018, the village was featured in commercials for Arby's and Prudential. The village was also used as a starting place for the biggest advertisement poster in the world, which was finished on June 13, 2018.