The Indian Head cent was a one-cent coin ($0.01) produced by the United States Bureau of the Mint from 1859 to 1909. It was designed by James Barton Longacre, the Chief Engraver at the Philadelphia Mint, and featured a personification of Liberty wearing an Eagle-feathered headdress.

From 1793 to 1857, the cent was a copper coin about the size of a half dollar. The discovery of gold in California caused a large inflation in prices. As gold became more abundant, the price of copper rose. Cent and half-cent manufacture was one of the only profit centers for the Mint and by 1850 it began looking for alternatives. In 1857, the Mint reduced the size of the cent and changed the composition to 12% nickel and 88% copper (copper-nickel), issuing a new design, the Flying Eagle cent. The new pieces were identical in diameter to modern cents, though thicker. This was the first use of copper-nickel for United States coins. The copper-nickel made them look brighter and they began to be called "White cent" or "Nicks".

In 1858, the Flying Eagle was replaced with the Indian head design. The Flying Eagle design caused production difficulties and the Mint soon looked to replace it. Mint Director James Ross Snowden selected the Indian Head design and chose a laurel wreath for the reverse, that was replaced in 1860 by an oak wreath with a shield. Cents were hoarded during the economic chaos of the American Civil War, when the metal nickel was in short supply. As Mint officials saw that privately issued bronze tokens were circulating, they induced Congress to pass the Coinage Act of 1864, authorizing a slimmer cent of bronze alloy.

In the postwar period, the cent became very popular and was struck in large numbers in most years. An exception was 1877, when a poor economy and little demand for cents created one of the rarest dates in the series. With the advent of coin-operated machines in the late 19th and early 20th centuries, even more cents were produced, reaching 100 million for the first time in 1907. In 1909, the Indian Head cent was replaced by the Lincoln cent, designed by Victor D. Brenner.

The half-dollar-sized large cent was struck from 1793 to 1857. That coin was intended to contain close to a cent's worth of copper, as people expected coins to contain close to their face values in metal. Nevertheless, because of the constitutional clause making only gold and silver legal tender, the government would not accept copper cents for taxes or other payments. By the early 1850s, fluctuations in the price of copper led the Mint of the United States to seek alternatives, including reducing the size of the cent and experimenting with compositions other than pure copper. The result was the Flying Eagle cent, the same diameter as the later Lincoln cent but somewhat thicker and heavier, composed of 88% copper and 12% nickel. The Flying Eagle cent was struck in limited numbers as a pattern coin in 1856, then for circulation in 1857 and 1858.

The Flying Eagle cent was issued in exchange for worn Spanish colonial silver coins, which until then had circulated widely in the United States. These "small cents" were also issued in exchange for the copper coins they had replaced. By 1858, Mint authorities found the piece unsatisfactory in production. The high points on both sides of the coin (the eagle's head and the wreath) opposed each other, and it was difficult to get the design to be brought out fully in the tough copper-nickel alloy. Mint Engraver James B. Longacre, designer of the Flying Eagle cent, was instructed to develop alternative designs. He produced one, showing a slimmer eagle, which would not clash as much with the reverse wreath. Although that would have cured the production problem, the design was not liked. Mint Director James Ross Snowden suggested a head of Columbus as an obverse design, but Longacre felt the public would not approve of a historic figure on an American coin.

In 1858, the Mint tested new designs for the cent. Between 60 and 100 sets of twelve pattern coins were struck, consisting of the standard Flying Eagle obverse, a "scrawny eagle" pattern, and the Indian Head design, mated with four different wreaths for the reverse. Snowden made his choice of what design would be struck in 1859 from those patterns, and the sets were also sold to collectors. The Indian Head design was apparently prepared by April, as on the twelfth of that month, a Mr. Howard wrote to Snowden that "I have learned that a new pattern piece for the cent has been struck off at the Mint [with] a head resembling that of the five dollar piece and on the reverse a shield at the top of the olive and oak wreath", and asking to purchase a specimen. Other numismatists also sought pieces: R. Coulton Davis, a Philadelphia druggist with ties to the Mint, wrote to Snowden in June informing him of a favorable story in a Boston newspaper, and Augustus B. Sage wrote to the Mint Director the same month, asking for a specimen for himself, and one for the newly founded American Numismatic Society.

According to Walter Breen, Snowden most likely chose the combination of the Indian Head and the laurel wreath because it had the lowest relief of any of the options, and could be expected to strike well. On November 4, 1858, Snowden wrote to Treasury Secretary Howell Cobb about the Indian Head design, and two days later wrote to Longacre, informing him that it was approved. Longacre was to prepare the necessary dies for production, which was to begin on January 1, 1859.