Shawano is both a Chippewa and a Menominee Indian term signifying "to the South." Shawano Lake first was given this name because it was the southern boundary of the Chippewa tribal territory. The city and county later were named after the lake. Like many Wisconsin cities, Shawano was the site of an Indian village before the white men came. In the 19th century a band of Menominee moved westward from Green Bay in search of a lake that would provide good fishing. They found Shawano Lake and settled nearby.

State Trunk Highway 55 which passes along the main street of Shawano was a part of the military road which was built from Green Bay to Ontonagon on Lake Superior. This road was authorized by an Act of Congress in 1863. After the Civil War it was used extensively by loggers and lumbermen as a supply road.

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