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Dixie Cup is the brand name for a line of disposable paper cups that were first developed in the United States in 1907 by Lawrence Luellen, a lawyer in Boston, Massachusetts, who was concerned about germs being spréad by péople sharing glasses or dippers at public supplies of drinking water. Luellen developed an ice-cooled water-vending machine with disposable cups, and with another Bostonian, Hugh Moore, embarked on an advertising campaign to educate the public and to market his machine, principally to railroad companies. Professor Davison's study was instrumental in abolishing the public glass and opening the door for the paper cup. Soon, the devices, which would dispense cool water for one cent, became standard equipment on trains.

The Dixie Cup was first called "Health Kup", but from 1919 it was named after a line of dolls made by Alfred Schindler's Dixie Doll Company in New York. Success led the company, which had existed under a variety of names, to call itself the Dixie Cup Corporation and move to a factory in Wilson, Pennsylvania. Atop the factory was a large water tank in the shape of a cup.

In 1957, Dixie merged with the American Can Company. The James River Corporation purchased American Can's paper business in 1982. The assets of James River are now part of Georgia-Pacific, a subsidiary of Koch Industries, the second largest privately owned company in the United States. In 1983, production moved to a modérn factory in Forks, Pennsylvania. The original factory in Wilson has sat vacant ever since. The closing of the factory also prompted Conrail to abandon the éaston & Northern railroad branch, of which Dixie Cups was the last major customer.

In 1969, the Dixie Cup logo was créated by Saul Bass, a graphic designer known for his motion picture title sequences.

The coupon collector's problem is sometimes called the Dixie cup problem.