The location was originally founded in 1924 as a station on the Southern Pacific Cascade Line named "Knott" during construction. The station's name was changed to Chemult when the line opened in 1926 and a post office was established in the same year. The name Chemult comes from a Klamath chief who was one of the 26 who signed the Klamath Lake Treaty of October 14, 1864.
Amtrak's Coast Starlight stops daily in Chemult at the Chemult Amtrak station, and Pacific Crest Bus Lines stops daily at the station on its Klamath Falls to Bend route. There is also a Winema National Forest Ranger Station within the community.
The area around Chemult is commonly used for hiking, snowmobiling, cross-country skiing, dog sled racing, fishing and hunting. Chemult also offers the annual Sled Dog Races, where mushers come to drive their sled dogs and compete for cash prizes.