In 1976, a plan was created to build a new station 488m in the southern direction of the existing Campbelltown railway station. The plan for a "new" Campbelltown station was dropped and the plan was modified to be an unmanned, new, station. The plan was later changed to be 1800m to its current location, being built to serve a shopping centre being built 500m away. The station was originally supposed to be named Ambarvale, after the suburb it is located, but this was later changed to Macarthur, the name of the region.[4] Construction started in November 1983 with the station opening on 28 July 1985.[5][6][7] It was initially only served by a few peak-hour services until a new timetable was introduced on 16 November 1986.[8]
The station initially consisted of two side platforms. Because suburban trains terminating on the main lines caused congestion to through trains, a side turnback platform was added in time for the 2000 Summer Olympics.
Under the CityRail Clearways Project, Macarthur received an upgrade. This work, completed in late 2010, included refurbishment of the station, a bus interchange, and a new carpark. In a proposed second stage, Macarthur was to receive a fourth platform for through trains heading south, however, the project was cancelled.[9]
Electrification through the Macarthur station site was completed in 1968 as part of the Liverpool-Glenlee electrification project. Electric passenger trains terminated at Campbelltown, but freight trains continued to Glenlee coal siding and loader (now in Mount Annan) so that electrically hauled coal trains could connect it and Port Kembla. The Glenlee coal loader has closed and electric trains are stopped at Macarthur, with the wires only extending a few hundred metres down the line.
