August 28
The Muscle Shoals, Alabama power plant begins operation in effort to remedy power shortages caused by low water levels in the area. The Wilson Dam, completed in 1925, tames this shallow, hard to navigate section of the Tennessee River and helps provide hydroelectric power to parts of southern Tennessee, northwest Alabama and northeast Mississippi. In 1933, when the Tennessee Valley Authority is established, its birthplace will be generally accepted as Muscle Shoals.

November 22
Grand Ole Opry, Nashville, Tennessee, begins regular Saturday night broadcasts over new local radio station WSM. Originally a nameless music show, the first country performer is an 80-year old hard-drinking fiddler named Uncle Jimmy Thompson. White bearded and outspoken, Thompson brags that he can "fiddle the bugs off a 'tater vine." He plays nonstop for an hour, fielding requests by telegraph and telephone after saying on the air that he knows "a thousand tunes" and promises to play all requests. Broadcasting later as the "WSM Barn Dance", the show will thrive over the years reinventing itself and playing in larger venues. It renames itself the Grand Ole Opry in 1928. Regulars on the show in its early days included banjo playing Uncle Dave Macon and harmonica wizard Deford Bailey.

Also in 1925:

The Combined Line and Recording (CLR) method of handling toll calls over long distances (100 miles or more) is introduced experimentally by Bell Systems, reducing handling of toll calls from 13 minutes to 7 minutes.