The fort is named in honor of Lieutenant General Arthur MacArthur.
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In 1975 Fort MacArthur became a sub-post of Fort Ord, and the Army transferred ownership of the fort's Upper and Lower Reservations to the City of Los Angeles two years later.
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Hostelling International USA (part of Hostelling International) maintains a 57 bed youth hostel in the refurbished military barracks of the reservation.
On 25 December 1941, I-19 torpedoed the US freighter Absaroka off of Point Fermin, and the Asaroka was subsequently towed to and beached near Fort MacArthur.
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Among his larger real estate transactions were the sale of properties for the Standard Oil (now Chevron) refinery at what became El Segundo and the Army's Fort MacArthur at San Pedro.