Paterson graduated from King's College, Aberdeen in 1624, and was appointed to the church of Foveran, Aberdeenshire, in 1632.
He refused to sign the National Covenant of 1639, and fled to England to the king.
In July of the following year, however, he recanted in a sermon before the general assembly and was restored to his church at Foveran.
He was among the benefactors contributing to the erection of a new building at King's College, Aberdeen, in 1658.
In 1662 he was appointed the Bishop of Ross, being consecrated on 7 May 1662 at Holyrood Palace, Edinburgh.