In 1923, the City of Caraway was named for the U.S. Senator, Thaddeus Caraway (in office from 1921 - 1931). In 1912, the city was a lumber camp called White Switch.
On September 28, 1916, White Switch started its first post office and selected Joseph Ewing Johnston as the postmaster. This post office still serves the city.
Caraway was one of the last cities to become incorporated in the northeastern part of Arkansas.