The teeny-tiny unincorporated community of Matchwood is in Matchwood Township, Ontonagon County. The name came from the Diamond Match Company, whose owners founded the Matchwood settlement in 1888. The company was there to accommodate the numerous logging camps that were throughout the area.

Matchwood became a stop along the Duluth, South Shore & Atlantic Railway, which is now known as the Soo Line Railroad.

After getting their own post office in 1889, Matchwood suffered a forest fire in 1893 that almost devastated the whole community. After rebuilding, another fire broke out in 1906 and the town was once again ruined. However, the post office still operated up until the mid-to-late 1950's.

In 2000, the population was 115; by 2010 it was down to 94.

Today, there is no business except for a sawmill that may still be in operation. There are also a few dwellings – but not many – scattered throughout the woodsy area.

There are now road signs announcing your arrival to 'Matchwood' from the east and west. Otherwise, you never would have known there used to be a village there.