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Drag City is a Chicago-based independent record label. It was established with a Royal Trux release in 1989 in Chicago, Illinois by Dan Koretzky and Dan Osborn.

Drag City specializes in experimental indie rock acts. Among the bands that have released material on Drag City are Pavement, Royal Trux, Cynthia Dall, Faun Fables, Bill Callahan, Will Oldham, Weird War, Jim O'Rourke, Loose Fur, David Grubbs, U.S. Maple, Alasdair Roberts, Neil Michael Hagerty, The Howling Hex, Ghost, Flying Saucer Attack, Movietone, The Fucking Champs, Papa M, Pearls and Brass, White Magic, The Renderers, Espers, Silver Jews, Monotonix, Joanna Newsom, Michael Yonkers, RTX, The Red Krayola and Edith Frost. In recent years, they have expanded their catalog to include alternative comedy releases, with recent outputs from Fred Armisen and Neil Hamburger, among others, and reissues, notably by Gary Higgins and Death.

Drag City's first release, 'DC1', was the single 'Hero Zero' by Royal Trux.

Several Drag City albums have been licensed to Domino Records for British release.

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