Vaiden was founded about 1857 and named after Dr. Cowles Mead Vaiden (04/21/1812 – 02/06/1880), a local doctor, planter, and philanthropist. In the late 1850s, Dr. Vaiden gave the right-of-way through his land for construction of the last span of the Central Railroad, in order to connect the state capital, Jackson, Mississippi, with Memphis, Tennessee. Around the railroad’s completion in 1857, the population that had settled at the former Choctaw Indian town of Shongalo was moved to the east, to allow for better access to the railroad.

The new town was named in honor of Dr. Vaiden, and was made a regular stop on the railroad line. For that reason, it was designated as the county seat of Carroll County. Vaiden was incorporated on February 10, 1860. With additional development of population in the county, residents wanted to have access to a town closer to the Mississippi River. Carrollton, Mississippi was also designated as a county seat and is the site of the county courthouse.