Memphis was established in the 1880s when the Chicago, Burlington and Quincy Railroad expanded to the area, on land owned by Jack C. Owen. The town was originally slated to be named “Owenville” after Owen, but he declined the honor, and it was instead named for Memphis, Tennessee, home to many of the early settlers.

One of the smallest and most densely built villages in Saunders County, Memphis covers just 0.089 square miles and had a 2020 population of 109.