James Ferrier was born on October 22, 1800, in Dunshalt, Fifeshire, Scotland.

He was a merchant, politician, railway promoter, and capitalist. In 1821, he emigrated from Scotland to Montreal where he established himself as a successful merchant. He served as a city councillor of Montreal from 1841 to 1848. He was named Justice of the Peace and later served as a Lieutenant-Colonel in the local militia. In 1842, he was one of the co-founders of the High School of Montreal. He became the fourth mayor of Montreal, holding office from 1844 to 1847. He served on the Legislative Council of the Province of Canada from 1847 until Confederation, after which he was appointed to the Senate of Canada by Royal Proclamation in October 1867. He sat with the Conservative group and represented the Senatorial Division of Shawinigan until his death in 1888. From 1867 until his death, he also served on the Legislative Council of Quebec, sitting for the division of Victoria. He was a promoter and president of the Montreal Mining Company, the New City Gas Company, the Montreal and Lachine Railway and he became a director of the Grand Trunk Railway in 1855. In his later years, he travelled extensively throughout Africa, Asia, and Europe, and brought back souvenirs that were donated to the Natural History Society of Montreal and McGill University. He was appointed and served as the Chancellor of McGill University from 1884 to 1888. He contributed throughout his life to the rise of the Methodist Church and participated in many philanthropic and educational works. He is commemorated by Ferrier Street in northwestern Côte-des-Neiges, Montreal.

In 1822, he married Mary Tod (1799–1881). He died on May 30, 1888, in Montreal, Quebec.