Native Americans were the first to inhabit Fraser. In fact, Mulvey Road, the oldest street in Fraser, was originally a Native American trail. As French and English pioneers settled Macomb County, Alexander D. Fras(z)er came from Detroit and established the settlement of Frazer in 1858. Many of the first inhabitants were of German descent. In 1875, a lumber business was established in Frazer by Charles Steffens, who would later serve as president of the village; his son George and George's son Walter also held that office. Another major business started in the community was Reindel Hardware, which began in 1898 and is still in operation. In 1894, Frazer was incorporated as a village. Its English and German spellings, Fraser and Frazer, were used interchangeably until 1928, when a vote was taken to establish the community with an s. In 1905, Fraser had a major fire that destroyed many of the town's buildings, although a bucket brigade saved many of the residences from the blaze. The State Bank of Fraser was established in 1910, and in 1930 its majestic new building, which still stands today, was built at Fourteen Mile and Utica Roads. In 1956, Fraser was incorporated as a city.
