James Harrod established the first settlement in 1774 in what is now Kentucky. Daniel Boone and his companions settled Boonesborough in 1775. With settlement came pressure for statehood. Kentucky's first constitution was approved in April 1792. Kentucky became a state two months later. Frankfort became the capital as a compromise between the largest cities, Lexington and Louisville.

The new state quickly adopted a state rights position in 1798 when it adopted resolutions opposing the Alien and Sedition Acts. A border state, Kentucky attempted to remain neutral during the Civil War. That was an impossible situation because of its location and its citizenry's divided loyalties. Therefore, Kentuckians were found both in the Confederate and Union armies. Confederate forces invaded Kentucky in 1861, but essentially all of the fighting within the state ended by 1863.