Big Sky Resort was the vision of NBC News anchorman Chet Huntley, a Montana native. Big Sky opened in December 1973 with a main base area at an elevation of 7510 feet (2290 m) on the eastern face of Lone Mountain, the sixty-seventh highest mountain in Montana, and the seventh-highest mountain in the state outside of the Beartooth Range (11,166 feet, 3403 m).

The first four lifts at Big Sky were the gondola and three chairlifts. The enclosed gondola (now #1) carried four skiers per cabin and climbed 1525 vertical feet to 9040 feet (2755 m). The nearby "Lone Peak" triple chairlift provided the lift-served maximum of 9800 feet (2987 m), unloading at the bowl 1366 feet (416 m) beneath Lone Mountain's summit, providing a vertical drop of just under 2300 feet (701 m). The "Explorer" double chair served novice terrain just above the base, and the "Andesite" double climbed the north face of adjacent Andesite Mountain to 8700 feet (2652 m). (This lift was renamed "Rams Head" in 1978, and replaced with the "Ramcharger" high speed quad in 1990.)

After its third season, Boyne Resorts purchased the resort in 1976, following Huntley's death from cancer in March 1974 and the decision of owner Chrysler Corporation to divest its real estate development assets. The resort grew steadily over the following decades, adding lifts and more than tripling the terrain available for skiing and snowboarding. The fifth lift, a second chairlift on Andesite Mountain, was installed in the summer of 1979. The "Mad Wolf" double climbed Andesite's eastern face and lowered Big Sky's minimum elevation 540 feet (165 m) to 6970 feet (2124 m). This increased the area's vertical drop to over 2800 feet (853 m). (It was replaced with the "Thunder Wolf" high speed quad in 1994.) Two lifts were added in the 1980s. "Gondola Two" was installed in parallel to the first gondola, and the "Challenger" double chair served upper elevation expert terrain on the north edge of the ski area. A tow was added later added above this lift. (Gondola Two was replaced with the "Swift Current" high speed quad chairlift in 1997.) The eighth lift at Big Sky was the "Southern Comfort" triple chair on Andesite Mountain, installed in 1990 (Southern Comfort was upgraded to a high speed quad chairlift in 2004/2005).

In the fall of 1995, Big Sky shed its intermediate image and leapt into national (and international) prominence with the addition of the Lone Peak Tram, built to take expert skiers to within feet of the summit of Lone Mountain at 11,166 feet (3399 m) to copious extreme treeless terrain. The "Shedhorn" double chair was also part of this expansion, added in 1995 on the lower south face of Lone Mountain. The tram substantially increased Big Sky's vertical drop to 4180 feet (1274 m), surpassing Jackson Hole by 41 feet (12.5 m). The minimum elevation was lowered further in the fall of 1999, with the addition of the "Lone Moose" triple chair; its base elevation is 6800 feet (2073 m) at Lone Moose Meadows. This increased the ski area's total vertical drop to 4350 feet (1329 m); its maximum continuous vertical drop is 3650 feet (1112 m), from the top of the tram to the main base area.

In 2007, Big Sky expanded the skiing opportunities on the south face of Lone Peak with the addition of the new triple chair Dakota Lift, and the accompanying "Dakota Territory". Future plans include possibly installing a new lift that would go up the south face to the top of Lone Peak. The growth off of the slopes was highlighted in 1990 with the addition of the Shoshone Condominium Hotel and the Yellowstone Conference Center, which increased summer business to the resort. In April 2000, Boyne Resorts announced that an estimated $400 million in improvements would take place over the next ten years to Mountain Village and the ski area. Later in 2000, the $54 million Summit Hotel was completed, providing four-star, ski-in ski-out accommodations. In late 2007, the $25 million Village Center Complex was opened, expanding the shopping, dining, and ski-in ski-out accommodation options.