The river has a total length of 36 kilometres (22 mi) and rises in the Darling Range below Wellington Mill then flows in a north-westerly direction until discharging into the Preston River at Picton near Bunbury.

The river was named after John Ferguson by the surveyor H.M. Ommanney.

Ferguson owned a property along the river that Ommanney was surveying at the time.

The Ferguson Valley is a tourist area in the Shire of Dardanup with several wineries, restaurants, boutique breweries and art galleries to be found amongst the picturesque rolling hills.

[3] The area is also still utilised for grazing of dairy cattle.