See also: Penland School of Crafts.
The Appalachian Industrial School was a coed grammar school founded in Penland in 1912 by Episcopal minister Rufus Morgan. Sponsored by the Diocese of Western North Carolina of the Episcopal Church, the school was situated on more than 200 acres of land originally occupied by Seven Springs Baptist Industrial School. The school's curriculum included English (as required in the North Carolina Course of Study), Bible study, nature study, music, folk dancing, sewing, and manual training. Boys and girls interested in farm life could help with essential activities such as milking, haying, and vegetable gardening. Games were played on the playground, and, when they reached an appropriate age, students were instructed in gardening, cooking, housekeeping, care of farm animals and pets, and taking care of their own clothing. In a shop, some children worked with wood, leather, clay, and paints.
The school year ran from September to June, and during the summer the property was used for a summer camp. Morgan's sister, Lucy, was principal of the school from 1920 to 1923. She is, however, remembered more as the founder of the Penland School of Crafts. The Appalachian Industrial School was closed in July 1964, and the property was purchased from the Episcopal diocese by the Penland School of Crafts.