The original boundaries of McPherson County were established by the Legislature in 1887, the actual settlement of this area was relatively slow.  In the 1870's the first settlers were main free-range ranchers.

McPherson County was officially established in 1890.  The county was named after General James McPherson, a civil war officer.

A sod building was constructed in 1890 and was used for the courthouse.  This building would be used until 1926 when a two story brick building would be constructed.

By 1910 the county grew to its peak of 2,500 citizens due to the passage of the 1904 Kinkaid Act.  But due to few resources and the lack of  railroad services the population began a steady decline.

When the McPherson County was originally established it included what is now known as Arthur County, this area was then called a precinct.  In 1912 due to conflicts, Arthur precinct seceded from McPherson County and was established as Arthur County with the current boundaries.

Tyron, McPherson County seat, is one of the only two unincorporated villages in Nebraska to serve as a county seat.