Following the devastating defeat of American troops at the Battle of the Little Bighorn earlier in 1876, a sense of urgency and a need for retribution emerged within the United States Army. Eager to demonstrate power and regain lost morale, General George Crook ordered an assault on the Cheyenne village under Chief Dull Knife at the Powder River's headwaters. This coordinated attack took place during the early morning hours, catching the villagers unprepared and asleep.

The Cheyenne village was largely comprised of non-combatants, including women and children, who were seeking refuge from the escalating hostilities. The incursion was brutal; soldiers looted the village, set fires, and caused considerable destruction while also killing and displacing many of the inhabitants. The clash was not merely an act of revenge but also aimed at stifling the rebellion and deterring future resistance from Native American tribes in the region, which were beginning to unify against encroachments on their lands by settlers and the government.

Chief Dull Knife, known for his resistance against U.S. expansion and for guiding his people during these trying times, saw his village suffer tremendous losses. Following the attack, remaining villagers faced the challenge of regrouping and finding safety amid a sustained campaign of violence from U.S. military forces, which were increasingly aggressive in their objectives to subdue Indigenous populations. The attack symbolized a broader pattern of violent suppression and underscored the complexities of the American Indian Wars, wherein military strategy often disregarded the rights and humanity of Native communities.