John Watson and James Ferguson established Watson Ferguson following their migration together to Brisbane from Scotland in 1868. Watson had experience as a printer and engineer, and Ferguson as a bookseller and stationer. They initially established offices in Queen Street Brisbane, and a printery in Adelaide Street, but in 1882 erected a four-storey building in Queen Street where all their business was conducted, including wholesale and retail bookselling, as well as aspects of printing such as lithography, engraving, oil embossing, illumination, and tin plating.

Watson Ferguson were well-known printers of stationery and novelty items and maps, but also undertook a variety of publishing, notably of works by Queensland writers, including autobiographies, biographies, local histories, poetry and fiction.

Watson and his wife died in the wreck of the RMS Quetta in Torres Strait in 1890, and Ferguson converted the business into a public company. The business expanded and moved to a new printery in South Brisbane, which at one time employed more than 200 printers. During the First World War the landmark building was occupied by the Defence Department. The business suffered financially during the economic depression of the 1930s, while under the management of James Ferguson's son Eric. The printing plant was sold to Jackson and O'Sullivan Pty Ltd in 1939.

In 1978 the company established Boolarong Press, with the aim of providing a means for local writers to have their work published.

The principals of Watson Ferguson and Co in 2009 were Terry Kelly and Steve Gould.