According to the United States Census Bureau, the CDP has a total area of 0.9 square miles (2.4 km²), all of it land.
There were 393 households out of which 29.3% had children under the age of 18 living with them, 53.2% were married couples living together, 8.7% had a female householder with no husband present, and 34.9% were non-families. 25.4% of all households were made up of individuals and 4.6% had someone living alone who was 65 years of age or older. The average household size was 2.57 and the average family size was 3.06.
In the CDP the population was spread out with 26.5% under the age of 18, 10.8% from 18 to 24, 29.7% from 25 to 44, 23.3% from 45 to 64, and 9.6% who were 65 years of age or older. The median age was 34 years. For every 100 females there were 104.1 males. For every 100 females age 18 and over, there were 97.4 males.
The median income for a household in the CDP was $48,102, and the median income for a family was $55,625. Males had a median income of $35,833 versus $26,346 for females. The per capita income for the CDP was $21,488. About 8.3% of families and 15.8% of the population were below the poverty line, including 20.0% of those under age 18 and none of those age 65 or over.
Nearby Mount Hermon was the site of California's first water-powered sawmill (circa 1841).
In 1875, the Santa Cruz & Felton Railroad rolled into town. By 1880, a second rail line came down from Alameda, California and San Jose, California. A new depot was constructed at "New Felton" using salvaged materials from a dismantled portion of the Boulder Creek flume. The railroads, limekilns and forest in this area provided a majority of the repair materials for the great 1906 San Francisco earthquake. The "broad gauge" came into Felton by 1909.
In 1963, the steam-powered Roaring Camp & Big Trees tourist railroad began operations on the Big Trees Ranch out of the old Felton depot. They later constructed a replicated logging camp and another depot further down the property, and in 1985, took over operations on the old SPC/Southern Pacific line to Santa Cruz. Roaring Camp is a re-creation of an 1880s logging camp and home to the original South Pacific Coast (later Southern Pacific) Felton depot and freight shed, as well as two unique railroads: the Roaring Camp and Big Trees Narrow Gauge Railroad (a steam-powered line up Bear Mountain) and the Santa Cruz, Big Trees and Pacific Railway.
On July 28th, 2008 "a significant percentage" of Felton will be participating in LINdependence 2008 and switching their operating system to Linux for a week or more. The event is scheduled to first begin on July, 13th. The event has been reported on by Nathan ichtertz of San Jose Mercury News.