Murthly's original mill was built in the 19th Century and was water-powered by a series of articifially-created lochs: Robin's Dam, Rohallion Loch and Stare Dam, which flows out under the B876 and into the Mill Dam. This loch system provided power controlled by sluices for the original sawmill at Byres of Murthly, which was built 3 storeys high in the shape of a meal mill. The ground floor housed the waterwheel machinery, the first floor the sawing operation and the top floor a workshop.

The present mill was established in the mid-1970s and is owned and operated by Murthly & Strathbraan Estates, with timber being sourced mostly from the local area.

The aims of the mill are to improve the effectiveness and efficiency of operations and expand domestic timber applications (e.g. Garden fencing, decking etc.) to complement existing agricultural wood products and other timber merchant business.

In 2020 there are plans to power the sawmill almost entirely by solar power during the late spring and summer months.