The exact founding year of Millburn cannot be determined, possibly 1807, although the first written record appears in 1825. The distillery is located about one mile east of Inverness city centre, adjacent to the former Cameron Highlanders barracks. Production ceased in 1837. In 1853, a permanent lease was obtained by local grain merchant David Ross, who converted the original distillery into a flour mill, with five factories drawing water from Mill Burn at that time. In 1876, he successfully applied for town water supply, and commissioned a larger distillation plant to be built on the original site. This business was transferred to David Ross's son George in 1883. In 1892, George sold it to Alexander Price Haig and his brother David, who created the famous 'Distillery King' dynasty. They renovated the distillery: 'The entire interior layout was remodelled, equipment and machinery were all new.' However, post-WWI industry depression forced them to sell the distillery in 1921 to Booth's Distillers Ltd for £25,000. In April the following year, fire destroyed most distillery buildings and large stocks of barley and malt, with losses of about £40,000. The fire brigade received 'great assistance' from the Cameron Highlanders—Colonel David Haig had served as a reserve officer in the regiment for nearly thirty years. Reconstruction was entrusted to Charles Doig of Elgin, and the new distillery opened in 1887, with annual production of 150,000 gallons, nearly doubling capacity. In 1935, Booth's acquired Wm Sanderson & Son Ltd (owner of VAT 69 blended whisky brand). In 1937, D.C.L. acquired Booth's, and from 1943 began managing it through S.M.D. The distillery closed during WWII. In 1958, the distillery installed mechanical heating devices, and in 1966 converted 2 stills to indirect steam heating. Two years before that, the distillery installed Saladin box malting equipment, and around the same time introduced electricity.

The famous gin distillery Booth's Distillery Limited used its spirits to blend its own Cabinet whisky, and later VAT 69. Subsequently, under the management of S.M.D., Milburn was licensed to Macley Duff and used for their blended whiskies, including a 12-year-old blended whisky expression. The original distillery building has now been converted into the Old Distillery restaurant, where some interesting whisky memorabilia can be found.