Crane was named for the Crane Ranch which was founded in 1881. The first post office was established in 1910 with Steven Knutson as postmaster. Records indicate that another town in Gallatin County was also named Crane, but later changed to Cardinal when it was found that there was already a town named Crane.
Crane is located in northeastern Montana, just ten miles south of Sidney near the border of North Dakota on Montana Highway 16.