Library services began in Milbank with a donation of $1,000 from Jeremiah Milbank. A building was erected and the date for opening was set for November 12, 1882. Many years of financial difficulties and relocations of the library followed. In April 1905 the Library trustees and city council applied to Andrew Carnegie for a donation to build a library. The city donated a site and budgeted to make an annual appropriation for upkeep.
On May 8, 1906 a formal opening of the Milbank Carnegie took place and Miss Minnie Shannon was appointed librarian.
The Carnegie Library served the community for many years along with dedicated librarians and trustees. The Milbank Carnegie Library became the Grant County Library on January 1, 1978 after a vote in the general election of 1976 to consolidate library services to rural and city residents with the county assuming the financial obligation for doing so.
The historic Carnegie Library is now listed in the directory of National Historic Sites and is utilized by the Grant County Historical Society as a museum.