The area immediately around the exit is known as Sutton Lane and has been extensively developed in recent years, largely due to the community's central location within the state and easy accessibility to I-79. The area now features a convention center, amphitheater, KOA campground, driving range, outlet mall, truck stops, hotels, gas stations, and many fast food restaurants. A favorite local diner is "The Waffle Hut," which is open 24 hours a day.
The population of Flatwoods was 277 as of the 2010 census.
Although first incorporated in 1902, maps show the existence of Flatwoods as a town in 1873, and a church was established by a pastor named John Clark at the community there as early as 1830. The West Virginia and Pittsburgh Railroad extended a branch through Flatwoods in the late 1800's. Later, the line was taken over by Baltimore and Ohio Railroad, and Flatwoods was a halfway point on the B&O Railroad's Clarksburg-Richwood branch, approximately 62.6 miles from the Clarksburg terminal, and 59.1 miles from the Richwood terminal. The town also served as the origin of West Virginia & Pittsburgh Railroad's Sutton Branch.
The community became nationally known for the Flatwoods monster UFO incident which occurred on September 12, 1952.