The John Dewar and Sons company established this distillery in 1898, which operated until 1917 when barley shortages forced its closure. The distillery resumed production in 1919, producing whisky for blends until the outbreak of the Second World War. During the war, the distillery remained closed, and when it reopened after the war, there was a high demand for Aberfeldy whisky, causing a shortage of stock. To cope with the demand, the whisky was aged for only three years instead of the usual seven.
The distillery remained relatively inactive for several decades until 1972, when it underwent expansion, with the installation of four steam-heated stills. Production continued, and in 1999, a 12-year-old single malt whisky was introduced. A year later, the distillery opened a visitor center to the public.
Presently, Aberfeldy single malt whisky remains the primary ingredient in Dewar's blended Scotch.