Scotsburn is a village with some rural/residential development on the Midland Highway 15 km south-east of Ballarat and 4 km from Buninyong. It was named after the Scott family who took up the Mount Boninyong/Buninyong pastoral run in 1840. The mount is 2 km north of Scotsburn.

A school was opened in 1879 and named Scots Marsh, in recognition of the swampy areas which at times were notoriously difficult for horse-drawn vehicles to cross. The more attractive Scotsburn was adopted in 1889. In addition to the school, Scotsburn has had a farmers' association, a Union church (1884) and a hall (1891). The last-mentioned buildings continue in regular use, and the school had an enrolment of 34 in 2010.

Scotsburn has two notable homesteads. In the 1880s the Scott family divided their property and Mount Buninyong homestead (1884) was built on the site of the original slab hut. Yuulong homestead (1888) was built on the second property, and is on the Register of the National Estate. The first property, however, retains elements of the original garden, and is possibly the only surviving intact example of early domestic gardens.

The Mount Buninyong winery is immediately south of Scotsburn.

Scotsburn's census populations have been:

Census date Population
1891 126
1933 211
1961 124