Munday is located southwest of Wichita Falls and north of Abilene on US 277 and Hwy 222 in the region of Knox County known as Knox Prairie.
By 1940 Munday had 1,545 residents and seventy businesses, including a gin, a cottonseed-oil mill, grain elevators, and a compress. Its population was 2,270 in 1950. Thereafter cotton processing remained significant, but Munday also became a center for vegetable processing, since irrigation encouraged local farmers to raise onions, potatoes, cucumbers, melons, and other produce. Fertilizers and insecticides were manufactured at Munday, and the town became a petroleum center for two counties. Texas A&M University opened a vegetable research center in Munday in 1971.
The population of the community was 1,978 in 1960, 1,762 in 1970, 1,738 in 1980, and 1,600 in 1990.
The chamber of commerce sponsors a Knox County vegetable festival each June.