In 1745, Mathias Aspden, a Quaker merchant and ship owner purchased property in the center of the village of Haddonfield, cleared the poorly constructed brewery buildings and began constructing the largest tavern on the village's main road, Kings Highway. The structure was completed in 1750.

Taverns such as Aspden's were centers of commercial and social life, and in the increasing tensions between the British Empire, represented by Loyalists, and the Patriots, forums for heated debate that put the lives of both those arguing and the owners of such places in jeopardy. As tensions piqued because of the Battles of Lexington and Concord in 1775, the tavern's owner, Mathias Aspden, Jr., had gone to England for his education and returned a staunch Loyalist. He sold his tavern to Thomas Redman, who ran the village apothecary shop. Aspden, Jr. sailed for England for good as the Second Continental Congress was convening in Philadelphia in 1776. He was tried and convicted of treason in absentia; his properties in southwestern New Jersey and southeastern Pennsylvania were seized and sold, with the profits going into the Continental Treasury.

In 1776, New Jersey saw such towns as Princeton and Trenton devastated by marching armies from both sides during the American Revolution. Haddonfield residents gathered frequently at the tavern; Redman, who was also the clerk for the local Friends Meeting, was required to read publicly documents that included the sect's pacifist refusal to become combatants. Because of this, in January 1777 Redman was arrested and charged with sedition by an officer of the Continental Army, and jailed in Woodbury, the county seat at that time. Redman was released and fined on March 18 of that same year. He returned to his tavern in Haddonfield to find that the state had used his tavern that same day to create a Council of Safety, whose mission it was to try, convict and incarcerate deserters, Loyalists and other enemies of the Revolution. The cellar of the tavern is thought to have been used by this Council to hold the overflow from the guard house across the street

Indian King Tavern in 2010

Less than two months later, Redman sold his tavern to Hugh Creighton, who already owned a tavern a few blocks away near Potter Street. Creighton's old tavern was named the "Indian King" Tavern by its original owner, Sarah Norris, in deference to Lenape Native Americans who had cared for the newly immigrated and poorly equipped European settlers; it was subsequently taken over by Mary French, a widow who later married Creighton. Hugh Creighton then transferred the name of the tavern to his newly acquired tavern on Kings Highway.

The tavern was alternately occupied by British, Hessians and Continental troops as the revolution ravaged parts of the state. Patriot generals "Mad" Anthony Wayne, the Marquis de Lafayette and the Polish Count Casimir Pulaski all marched along Kings Highway, and the Indian King Tavern, being the largest and most prominent at the time, would have been used by these men for meetings, lodging and recreation. Today, the remains of British and Hessian soldiers who died in Haddonfield remain buried in unmarked graves at the north corner of the cemetery at the Society of Friends' meeting house nearby.

Several local legends about the Indian King Tavern have now been dispelled. When tours were given in the 1960s and 1970s it was said that Dolly Madison frequented the Indian King Tavern attending dances there. Another legend is that the tunnels from the Indian King Tavern under King's Highway were once part of the Underground Railroad.