The Australian Shepherd was developed in the 19th and earlier 20th centuries, in western North America. It is unclear to where the name “Australian” came from, other than the only dogs coming from Australia were merle in color. European settlers immigrating to the United States brought over many herding breeds to take care of the livestock. Breeds thought to be used in the makeup of the breed include the: English Shepherd, Dorset Blue Shag, Cumberland Sheepdog, Scottish Collie, Glenwherry Collie, Bouvier des Flandres, and the Welsh Sheepdog. It is believed that most of the dogs that contributed to the breed came from Great Britain and Scotland. It wasn’t until later on, that shepherds began to breed dogs that excelled in watching the flock and weathered well in the area; other than at random. Those that worked well in hot and cold climates, as well as being tough enough to work cattle unaccustomed to dogs, were used for breeding.

After World War II, they were used regularly in Western movies, television shows, and in rodeos. They soon became a popular addition to farms and ranches.