Elwood is located in Gosper County (of which it is the county seat), south of Lexington on US Hwy 283, between Eustis and Loomis, near the Elwood Reservoir and Johnson Lake.

The population estimate for July 1, 1998 was 802, an increase of 123 since 1990.

Elwood got it's name different than any other town. The story goes that surveyors could not decide what to call the new station. The men agreed to name it after the first person they met. It was Elwood Thomas, a homesteader, who came wandering by hoping to find a plug of tobacco. So he received the honor of having the town named for him.

Elwood offers many attractions throughout the area: The Plum Creek Massacre site north of Bertrand, history of irrigation and the railroad in the state, sandhill cranes, golf courses, lakes, historical cemeteries, local festivals, rodeos, great fishing and pheasant hunting.