The town began as a hamlet for the Canadian Pacific Railway (CPR) lines that were built in the area in 1883. The CPR named the town after one of its benefactors: Claude Bowes-Lyon, the Earl of Strathmore. The Earl's granddaughter, Queen Elizabeth – as consort to King George VI – later passed through the community on the "Royal Train" in late May 1939.
A track laying record was made between Strathmore and Cheadle when the railroad was built. In one hour one mile (1.6 km) of steel was laid and – at the end of the ten-hour working day – the rails were laid to Cheadle, for a record. Efforts by the Canadian government to develop western Canada led to increases in Strathmore's population and its importance as a rail supply stop.
In 1905 the CPR moved the Hamlet of Strathmore north to its current location. The first school opened in 1908.
The CPR railroad tracks are now gone, the land having been subdivided.
In 2011, the Town of Strathmore celebrated its centennial – and will release the book 100 Years of Memories: Celebrating Strathmore’s Centennial through Polished Publishing Group in early 2012.