The Battle of Wood Lake occurred on September 23, 1862, and was the final battle in the Dakota War of 1862. The two-hour battle, which actually took place at nearby Lone Tree Lake, was a decisive victory for the U.S. forces led by Colonel Henry Hastings Sibley. With heavy casualties inflicted on the Dakota forces led by Chief Little Crow, the "hostile" Dakota warriors dispersed. Little Crow and 150 followers fled for the northern plains, while other Mdewakantons quietly joined the "friendly" Dakota camp started by the Sisseton and Wahpeton bands, which would soon become known as Camp Release.

The Dakota War of 1862, also known as the Sioux Uprising, the Dakota Uprising, the Sioux Outbreak of 1862, the Dakota Conflict, or Little Crow's War, was an armed conflict between the United States and several eastern bands of Dakota collectively known as the Santee Sioux. It began on August 18, 1862, when the Dakota, who were facing starvation and displacement, attacked white settlements at the Lower Sioux Agency along the Minnesota River valley in southwest Minnesota. The war lasted for five weeks and resulted in the deaths of hundreds of settlers and the displacement of thousands more. In the aftermath, the Dakota people were exiled from their homelands, forcibly sent to reservations in the Dakotas and Nebraska, and the State of Minnesota confiscated and sold all their remaining land in the state. The war also ended with the largest mass execution in United States history with the hanging of 38 Dakota men.