Muleshoe is a small city in Bailey County, Texas, United States. The town of Muleshoe was founded in 1913 when the Pecos and Northern Texas Railway built an 88-mile (142 km) line from Farwell, Texas to Lubbock through northern Bailey County. In 1926, Muleshoe was incorporated. The population was 5,158 at the 2010 census. The county seat of Bailey County, it is home to the National Mule Memorial. The Muleshoe Heritage Center located off the combined U.S.