The site on which McFarlane School was built upon was originally part of a farm owned by William A. McFarlane in Greenfield Township, located outside the boundaries of Detroit. McFarlane had donated a small part of his farm to the township so that a small school could be built to serve the growing community. In 1924 a new school with room for 420 children was built on the site and named in honor of McFarlane. By this time the school opened in January of 1925 Greenfield School District had been annexed by the City of Detroit, so the school opened under the Detroit school board. Additions in 1930 and 1953 brought the total capacity to near 1,000.
Decreasing population and the age of the building led to the closure of McFarlane in 2010, part of a larger district-wide shuttering of schools.