The fort was named in honour of the then Commissioner of the North-West Mounted Police, Colonel James Macleod.

[8] Fort Macleod was originally established in 1874 on a peninsula along the Oldman River, then moved in 1884 to the present town location.

The town became a divisional point for the Canadian Pacific Railway and frontier wood construction began to be replaced by brick and sandstone.

From 1906 to 1912 Macleod had its greatest period of growth, as more new brick and stone building replaced the destroyed wooden ones.

As well, Heritage Canada started a Main Street Restoration Project in 1982, aiming to preserve the sandstone and brick buildings, some dating back to 1878.

The community enjoys frequent breaks from cold spells in winter when the Chinook wind blows down-slope from the Rocky Mountains.

The laundry apartment is located at 2422 Third Avenue, where a sign is posted marking the "passionate reunion" of Jack and Ennis.

Passchendaele was also filmed in Fort Macleod's historic downtown, which acted as a stand-in for Calgary circa 1915.

[24] Francesco Lucente's motion picture drama Badland was filmed mostly in Fort Macleod.