The Veterans of World War I of the U.S.A., and its adjunct Ladies Auxiliary formed in Olmstead, Ohio in 1949. Its major purpose was coordinating World War I veterans' lobbying efforts at the national and state level. They sought to ensure adequate pensions, health care, and other benefits to World War I veterans, their spouses, and dependent children. In addition, the organization sought cooperation with other veteran organizations; an "Americanism Program" to strengthen education in American History and recognition of those who defended the nation; and to provide fellowships among World I veterans, and their families.

Shortly after its inception, the Veterans of World War I devised a national administrative structure that divided the country into regions, departments (the unit for a particular state), districts and barracks (local chapters within a department or district). National governing authority was the National Convention. Between conventions the National Board of Administration and the National Commander held governing powers. A similar structure was held at Region, Department and Barracks levels.

In 1956, a group of Montana World War I veterans successfully petitioned the national organization for department status. The Veterans of World War I of the U.S.A., Department of Montana, Inc. quickly formed. Its adjunct, Veterans of World War I Ladies Auxiliary, Department of Montana, organized barely a year later.

The Montana Department and its Ladies Auxiliary were very active in promoting and supporting the national organization's lobbying efforts. In 1963, it hosted the organization's Regional Conference in Helena. The Department held annual state conventions from 1956 to 1977 and the Ladies Auxiliary held their own annual conferences from 1957 to 1985.