Farrar is an outer eastern suburb of Palmerston.

Farrar is bounded to the north and east by the Stuart Highway, to the west Roystonea Avenue.

Farrar was originally part of Gunn when Palmerston was divided into suburbs in 1984.

It was decided in 1999 to allocate a new name to the area of Gunn between the old and new Stuart Highway alignments.

The suburb is named after John Farrar, a pastoral pioneer of the Northern Territory.