John Bozeman was born in Pickens County, Georgia, in 1835. Like so many men of the Civil War era, he was struck with gold fever and headed west in 1858, abandoning his wife and three children. Bozeman came to Montana from Colorado in 1862 after his lust for gold fizzled when his claims failed to pan out. Seeing a need to supply the mining camps of Bannack and Virginia City, he realized it would be more profitable to "mine the miners" than to mine gold. In 1863, he and John Jacobs blazed the Bozeman Trail, a cutoff route from the Oregon Trail, and guided miners to Virginia City through the Gallatin Valley.

Bozeman saw the fertile Gallatin Valley as a most desirable place to live. He chose the site "standing right in the gate of the mountains ready to swallow up all tenderfeet that would reach the territory from the east, with their golden fleeces to be taken care of" to make his fortune. In 1864, Bozeman, along with Daniel Rouse and William Beall, platted the town which would bear his name. The Bozeman Trail passed directly through the Gallatin Valley and was used by travellers until 1868 when it was closed because of the Indian Wars. It served its purpose; emigrants who saw the lush valley settled in Bozeman's fledgling town.

John Bozeman was murdered under mysterious circumstances along the Yellowstone River, east of present-day Livingston, in April, 1867, three years after establishing his town. His partner on the trip, Tom Cover, reported they had been attacked by a band of Blackfeet Indians. Inconsistencies in Cover's story have led historians to suspect Bozeman was murdered, either by Cover, or possibly by a jealous husband of one of the few women in town.

Local hysteria over a possible Indian attack so close to town led to the establishment of Fort Ellis, three miles east of Bozeman. Fort Ellis kept the tiny settlement afloat by providing protection and a market for local farmers and merchants.

John Bozeman is buried in Sunset Hills Cemetery.