Tollycraft Yachts were created in the popular yachting area of the Northwest United States, in a town situated off of the Columbia River – Kelso, Washington. R.M. Tollefson started the Tollycraft Yacht Corporation - the company named after his own nickname, Tolly – in 1952. In 1959, the Tollycraft plant nearby the Kelso, Washington airport was built in 3 months, and six thousand yachts were constructed before the company was sold. The overall type of yachts with the Tollycraft name are described as being cruising yachts, though the model types vary widely – from pilothouse, flybridge, long-range cruiser, to cockpit, and aft-cabin. Tollycraft yacht hulls were constructed using fiberglass, and the sizes of Tollycrafts from the 1970’s to the 2000’s generally ranged from 30 feet to 70 feet in length.

Founded in 1936, Tollycraft began as a small regional builder of wooden cruisers for the Pacific Northwest market. The conversion to fiberglass was made in the early 1960's and by 1970 the Tollycraft line had grown to include a series of sedan and double cabin models from 24 to 40 feet. By then Tollycraft had become well known in West Coast markets, and the company began a period of prolonged growth. In 1974 the good-selling Tollycraft 37 Convertible was introduced, and by 1978 the Tollycraft 48 Cockpit MY made its debut-then the company's largest boat. By the late 1980s Tollycraft was selling its boats nationwide, and the company had earned a reputation as a quality builder of motor yachts and sedans. In 1987 the company was sold to a group of outside investors. With an economic recession on the horizon, the new owners attempted a huge expansion of both employees and plant facilities. By 1989 Tollycraft Yachts was in bad financial shape and a turn-around-specialist was brought in to cut costs and stabilize the company. In 1993, however, Tollycraft was forced to file bankruptcy and the company was shut down. Soon operating again under new management, Tollycraft slipped back in the red again in 1996 and operations were suspended in the fall of that year.