[2] He was born at Bath, Somerset, England, and arrived at Sydney with his parents in the ships Neptune and Scarborough in 1790, part of the Second Fleet.

Bligh, in his dispatch to Viscount Castlereagh of 30 April 1808, requested that "two of the rebels Charles Grimes and Edward Macarthur who have gone home in the Dart may be secured, in order to be tried in due time".

Henry Labouchère, suggesting that regular lines of steamers should be established in Australia to trade between the various ports.

That was referred to the governor, Sir George Gipps who, in May 1840, replied that government aid was unnecessary, because a large company had been formed to establish a line of steamers, of which James Macarthur (Edward's brother) was chairman.

On 5 December 1854, Macarthur travelled with the commander-in-chief of British forces in Australia, Major-General Sir Robert Nickle, to the site of the Eureka Rebellion.

In 1862, he was created a Knight Commander of the KCB and, in the same year, was given the colonelcy of the 100th (Prince of Wales's Royal Canadian) Regiment of Foot, a position he held until his death.