The district was originally known as
Ferny Flats due to the presence of ferns. The construction of the
railway line to Dayboro through the district led to the decision on 22 June 1916 to call the railway station in the area
Ferny Grove to avoid confusion with a place called Ferny Flats in
New South Wales. The suburb takes its name from the railway station. Before the
Second World War, Ferny Grove was mainly known for its pleasant picnic grounds along the banks of
Kedron Brook and large areas of forest and fern filled valleys, one of which gives the suburb its name. Before large-scale residential development, Ferny Grove was primarily industrial, containing a large claypit and the Wunderlich tile factory operating south of the railway station. The factory ceased operation in February 1963 and the buildings were temporarily used by the Brisbane Tramway Museum Society as their first home. The factory was demolished in 1972 to make way for the original Ferny Grove Tavern. After the war, while the area was still largely residentially undeveloped, the Brisbane City Council operated a
nightsoil sanitation depot beside Cedar Creek. The depot had closed by September 1969, as more of Brisbane was laid with sewerage infrastructure and the need for nightsoil treatment ended. The Brisbane Tramway Museum Society was established in 1968, when it became apparent that the
Brisbane City Council was preparing to close Brisbane's tram system. In 1972, the former nightsoil site at Ferny Grove was leased to the society to establish the
Brisbane Tramway Museum () which opened in June 1980. Ferny Grove's urbanisation occurred in the late 1970s. On 17 November 1979, the railway line from Ferny Grove to
Keperra was electrified. Ferny Grove State High School opened on 29 January 1980. St Andrews Catholic Primary School opened on 21 July 1985.
Brisbane City Council continued to use the area south of the former nightsoil depot as a large refuse tip until the late 1980s. The ferny grove from which the suburb took its name is no longer there; for, situated at the present site of rubbish dump 40 years old, the grove was buried under a large hill, upon which the City Council operates a waste transfer station (resource recovery centre) and sports playing fields (). == Demographics ==