Seward was founded in 1902 as the ocean terminus of the Alaska railroad, which was constructed between 1915 and 1923. The city was almost completely devastated by an earthquake in 1964. Some 90% of its waterfront industry was destroyed for example, but Seward but has since been rebuilt.

Seward's airfield and its ice-free harbor make it an important shipping and supply center for the Alaskan interior. The city boasts a seafood cannery and freezer plant and a sawmill. Tourism also bolsters Seward's economy. A University of Alaska maritime research station and a vocational training center are in town. An annual salmon derby is held and a race up nearby Mount Marathon attracts athletes from a wide area every year on 4 July.

Accommodation and restaurants are available in town. Seward is in the south of Alaska, on Kenai Peninsula, at the head of Resurrection Bay. It is 870 km west of Juneau and 5220 km northwest of Washington D.C.