Prague was platted in 1887 when railroad service reached the area, and named after Prague, the capital of Bohemia (present-day Czech Republic), reflecting the Bohemian heritage of most early settlers — though locally the name is pronounced to rhyme with “Craig,” unlike its European namesake.

Prague, population 291 in 2020, is known locally as home of “the world's largest kolach,” a Czech pastry advertised on a sign along Nebraska Highway 79, and sits about a mile from the Czechland Lake Recreation Area.