The community was initially located on the banks of Blanket Creek in 1850. The name Zephyr, meaning soft, gentle wind, was first used by land surveyors who were trapped in the area during a blue norther. In 1863, the Lazarus Vann family arrived in the vicinity. They were joined by other families over the next few years. A school was founded in 1876. Zephyr's first store opened in 1878 and a post office was established the following year. In 1885, the Gulf, Colorado and Santa Fe Railway completed a line from Brownwood to Lampasas that missed Zephyr by roughly a mile. Store owner J.M. Wilson moved his store and the post office one mile west of the community's initial location to its present site. The community later became a station on the railroad. On May 30, 1909, an F4 tornado struck Zephyr, killing 34 people and injuring 70. Most of the deaths occurred in residential areas on the southern and eastern sides of the community. To date, the Zephyr tornado remains one of the deadliest tornadoes in the state's history. The community rebuilt and experienced a long period of growth. By 1940, the population stood around 750. A new high school was constructed that same year. Zephyr's economy was dependent on cotton, but a boll weevil infestation and deteriorating market conditions caused the community's last gin to close in the early 1940s. The population had fallen below 300 during the 1960s and remained at that level into the 1970s. During the final decades of the 20th century, Zephyr was home to around 198 people. That figure remained constant through 2000.
Although it is unincorporated, Zephyr has a post office with the zip code of 76890.
Public education in the community of Zephyr is provided by the Zephyr Independent School District. The district has one campus that includes Zephyr Elementary School (grades PreK–5), Zephyr Junior High (grades 6–8), and Zephyr High School (grades 9–12).
- "Zephyr, Texas". The Handbook of Texas online. Retrieved 2009-09-07.
- "Zephyr, Texas". Texas Escapes Online Magazine. Retrieved 2009-09-07.
- "A list of the top ten worst tornadoes in Texas history". National Weather Service Weather Forecast Office, Amarillo, Texas. Retrieved 2009-09-07.
- Zip Code Lookup Archived June 15, 2011, at the Wayback Machine