According to legend, the name Sacred Heart first applied to Sacred Heart Creek back in 1841. This land was then under the crown of France, as part of the Louisiana Territory. A priest, named Father Ravaux, who ministered to the Indians for over 20 years, was traveling on a flat bottom boat on his way from St. Paul to Lac Qui Parle when he became ill. He landed his boat at the mouth of the creek, about 35 miles from his destination, and stayed there until he recovered. This creek separated into two forks as it entered the river and formed a sand bar in the shape of a heart. In gratitude to God for his recovery, Father Ravaux planted a cross by the sand bar and carved the name “SACRED HEART, AVE MARIA”.
Sacred Heart was originally settled in the Minnesota River Valley in 1866 and later, with the coming of the railroad in 1878, migrated to its present site. The first post office was established at the Minnesota River Crossing in 1870 with G.P. Greene as postmaster. Greene’s log house served as the first town center and school house, with his as the teacher. When the railroad came through the area, the first depot was named Sacred Heart, after the township.
In 1879, Hans Field moved his house from his farm into town and opened a hotel providing room and board for the men engaged in erecting the depot that spring. That summer Ole Torbenson built a general store, followed by Hans Field’s blacksmith shop. After their enterprises many more followed. By fall there were two elevators, two hardware stores, three general stores, two hotels, a blacksmith shop and a saloon.
The village was incorporated in 1883 with Henry Paulson as the first president and G.C. Aarnes as recorder.