The one that is generally accepted is that the village was named by George Stephen, the first president of the Canadian Pacific Railway (CPR), for his home parish of Mortlach, Scotland.

Other community names such as Parkbeg, Caron and Craigellachie, site of the 'Last Spike', also hail from his home parish.

A church in Dufftown in Banffshire, Scotland, with origins dating back to AD 525, bears the Mortlach name.

In 1904, the Canadian Pacific Railway's (CPR) new line became operational and the Village of Mortlach came to life on land originally homesteaded in 1902 by a Khamis Michael, a native of what is today Iraq.

1907 saw many additional businesses grow, more hardware and implements, dry goods, general stores, harness shops, butchers, tinsmith, livery, real estate and insurance, and a hotel with a restaurant.

Soon there were many more businesses in this thriving community: a Red and White Store, two restaurants, blacksmith, grocery store, two cobblers, butcher, baker, undertaker, embalmer, flour miller, electric repair shop, Chinese laundry, veterinarian, Beaver Lumber, Imperial Lumber, Bank of Toronto, photo studio, newspaper publisher, livery stable and auto garage, and another implement shop.

Mortlach has a number of attractions, including a community orchard, churches, parks and restaurants, a library, museum and the local scenery.

[13] Mortlach has one school that offers Kindergarten through grade 12, and supports its academic program with a mix of sports, cultural, and social aspects.