Knik is a Dena'ina (Tanaina) Athabascan Indian name meaning "fire," which originally applied to several villages at the head of Cook Inlet. A Russian Orthodox mission was in Knik as early as 1835. The primary village was listed as "Kinik" in the 1880 U.S. Census. During the 1880s, George Palmer's Store thrived off of the local fur trade. Gold found in Interior Alaska in 1908 brought prospectors and supplies to disembark at Knik. Construction of the Iditarod Trail brought mail from Knik to Nome, and shipments of gold by dog team to meet the boat at Knik. At its peak between 1913 and 1915, the town was home to 500 people during the summer and 1,000 during the winter. Knik had four docks, two general stores, two hotels, one saloon, one drug store, two physicians, one barber shop, and a grade school. It is said that more Dena'ina lived in Knik than did white settlers and miners. When the Alaska Railroad bypassed Knik in 1915, residents relocated to Anchorage and Wasilla. Camp 13 of the Matanuska Colony, with 6 farms, was established along Fairview Road in 1935. Land was also homesteaded by veterans after World War II and the Korean War. Most of the historic docks and commercial district were destroyed in the 1960s when Knik-Goose Bay Road was constructed. Low housing costs, the semi-rural lifestyle, and a tolerable commute to Anchorage have supported growth in the Mat-Su Valley.
A federally recognized tribe is located in the community -- the Knik Tribal Council. 8.7% of the population are Alaska Native or part Native. This community is relatively large, with over 2,600 homes. The population is diverse. Knik is a check-point for the Iditarod Sled Dog Race, and is called the "Dog Mushing Center of the World." High-school students are bused to Wasilla. Knik has long been home to Tanaina Athabascans.

During the 2000 U.S. Census, there were 2,593 total housing units, and 218 were vacant. 61 of these vacant housing units are used only seasonally. 2,789 residents were employed. The unemployment rate at that time was 13.45%, although 44.38% of all adults were not in the work force. The median household income was $52,113, per capita income was $20,895, and 11.1% of residents were living below the poverty level.

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