Petersham appears in Domesday Book of 1086 as Patricesham. It was held by Chertsey Abbey. Its domesday assets were: 4 hides; 1 church, 5 ploughs, 1 fishery worth 1000 eels and 1000 lampreys, of meadow. It rendered £6 10s 0d. Explorer George Vancouver retired to Petersham, where he wrote the Voyage of Discovery whilst living in what is now called the "Navigator's House" in River Lane. He died in 1798 and is buried in the churchyard of St. Peter's.
In 1847 Queen Victoria granted Pembroke Lodge in the Petersham part of Richmond Park to John Russell, 1st Earl Russell and it became their family home. Lord Russell's grandson, Bertrand Russell, spent some of his childhood there also.
Due to the German School London there is a substantial German population in Petersham.
Petersham is home to actor Richard E. Grant and to Nick Knight
Listed buildings include a watchman's box that also served as a village lock-up and dates from 1787.
HMS Petersham was a Ham class minesweeper.