The name was once Crecy then it became Fyrne which was later changed to Ferne. It was also known by the saxons as  Fiergen which meant the wood hill but today it is a 'dormitory' for Bournemouth and is one of the fastest growing villages in the county and has its own mayor and council. It is also the largest settlement in East Dorset and is a modern town. There is a modern shopping complex and industry has sprung up all around it though countryside also surrounds it.

Until the last century Ferndown was spelt as Fern Down and its foundation as a community owes its origins to William and David Steward who were market gardeners and came to the area from Dundee in Scotland looking for a less hostile climate. It was not long before their business prospered and the town owes much of its layout to their dream.