The First settlers into the district were the McBrides, the Fergusons, the Peevers, and Joe English. The town was named for a family by the name of Gray who came in somewhat later but who owed the land on which the town was built. The "burn" part came from a small creek which flows nearby. Graburn was never very large but at one time it had a store, a post office, a railway station, and two elevators.
The Post office opened on July 1, 1895, and closed March 31, 1912.