The history of the Inn started with Thomas Stanton (Staunton, whose family goes back to the fifth century from Nottingham, England). At the age of 20, Thomas came to America from England and settled in Stonington, Connecticut. Thomas Stanton established a trading post near the mouth of the then the Pawcatuck River around 1647 to obtain furs form the Natives. In 1655 an Indian Sachem granted Thomas a tract of land in what is now the town of Charlestown in exchange for his services in arranging a ransom for the princess. This tract of land over four miles wide and 2 miles long. The one roomed gambrel-roofed house was once in a lottery by Thomas and moved and placed on the tract of land in 1667. The house served as a schoolhouse for the tutoring of Indian children and his own children. The room still exists at the inn and is known today as the “Indian Room”.

In 1740 Joseph, the son of Thomas added the main building known today as the “George Washington Cabinet Room”. It is recorded that Joseph son kept 40 horses and conducted a profitable dairy business out of the Inn. Joseph Stanton III was born in Charlestown in 1739 and like his father was a Colonel in the militia, later earning the rank of General. He also served as deputy in the general Assembly and a delegate to the state convention to decide on the States acceptance of the Constitution of the United States. Joseph became one of Rhode Island's first two Senators in the United States Congress (1790-1793) and a United States Representative from Rhode Island (1801-1807). After the Revolutionary War, adverse financial times overtook the family and the mansion became an Inn. The Inn was operated by General Stanton, nephews Ledgewick and Joseph. It was a regular coach stop between Providence and New London. From the mid 1800's until after prohibition's repeal, the Inn was a mecca for gamblers from all over the country. Many nationally known names are in the book, including future presidents, generals, socialites and theatre people.

The General Stanton Inn still embraces some of its charm and original atmosphere, with the low ceilings, flaring fireplaces, brick ovens, and hand-hewn timbers. There are many things within it's walls reminiscent of bygone days when our ancestors were in such close contact with the tribes of Naragansetts, who roamed the hills of South County the Niante who were located in Charlestown, and the Manisees who controlled Block Island. General Stanton and his family are buried in the family cemetery located on the grounds of the Inn. The Stanton family owned the Inn for over 200 years.

The Inn was featured on the SciFi Channel show "Ghost Hunters" in October 2007. The program, and a related article in the New York Daily News, featured purported ghost sightings and encounters at the General Stanton Inn and the nearby General Stanton cemetery.

There have been only six owners of the property since the Indians owned the land. Subsequent owners along with the current owners have attempted to preserve the original appearance and historical integrity of the Inn where it is physically possible. It is one of the oldest existing inns in the country.