The Dyckman Farmhouse, built in the early 1780s, was once the center of a thriving farm, with fields and orchards of cherry, pear and apple trees. The Dyckman family, for whom the house was named, lived in the house until the 1850s.

During the British occupation of Manhattan in 1776-83, the Dyckmans, like many other patriots, fled the city and did not return until the British had been defeated. When the War ended and the Dyckmans found that their home and orchards had been destroyed, William (Jan's grandson) built a new house on the Kingsbridge Road, now Broadway. They chose this location on a major thoroughfare in order to supplement their income by providing accommodations for travelers on their way to and from Manhattan. The Dyckmans also made their fields available to livestock that was being transported to slaughterhouses and markets in Lower Manhattan.

By the early 20th century, the house had fallen into disrepair. Developers, interested in capitalizing on rising real estate prices due to the IRT subway line's extension to northern Manhattan, wanted to purchase the house and surrounding lots in 1915. As numerous historic structures in Manhattan had already been torn down, many people thought it was important to preserve the Dyckman Farmhouse for future generations of New Yorkers. Mary Alice Dyckman Dean and Fannie Fredericka Dyckman Welch, daughters of the last Dyckman child to grow up in this house, bought the property and gave it to the City of New York in 1916. An adjacent parcel to the northwest was donated to the City by the Dyckman Institute in 1943, increasing the park's area to its present size.

The Dyckman Farmhouse Museum has been open to the public since 1916. It was designated a New York City Landmark on July 12, 1967. The museum is presently operated by the City of New York/Parks & Recreation and the Historic House Trust.