A Loch Lomond Distillery was first established in Arrochar in 1814, but closed three years later. The present business was established in 1964 by the former owners of the Littlemill Distillery in Bowling. Production began in Loch Lomond the following year in 1965. In 1984, the distillery stopped production until Glen Catrine Bonded Warehouses acquired the business and resumed malt production in 1987.Grain whisky production began in 1993 and two new malt stills were added in 1999. At the time the Grain distillery opened in 1994, it was the only distillery in Scotland producing both Grain and Malt whisky. It also operates a unique set-up of three sets of stills.

In 2014, the distillery was acquired by the private equity group Exponent alongside the management team.In June 2019 the business was acquired by Chinese Hillhouse Capital.

The former owner of Littlemill Distillery, Duncan Barton, developed the current site for the Loch Lomond Distillery. He brought innovative pot malt stills which rest in the cylindrical necks of the spirit stills. Traditionally the necks of malt stills are open. The Loch Lomond stills include special distillation trays in the necks, allowing for greater contact with the cooling alcohol vapour, said to make the process more efficient. These stills can produce alcohol up to 90% ABV where normal stills deliver the alcohol at around 70% ABV. This style of still allows for different "flavour notes" to be captured and emphasised through the range of alcohol strengths that can be captured and rejected. This is much more difficult to achieve through a conventional pot still.