Lambton is named after the Lambton Mill built in 1845 on the east bank of the Humber River. At its peak the Lambton Mill produced 150 barrels of flour a day. This profitable mill was owned by William Pearce Howland - a father of Confederation. Howland named his mill after John J. Lambton, who visited this area when he was then Governor General of Canada. The high-rise apartment building located at 4075 Old Dundas Street West is situated on the former site of the Lambton Mill.
Across the road from the Lambton Mill on Old Dundas Street stood the Howland general store and post office, and next to that was The Lambton Mills Hotel. The mill, the general store and the post office were destroyed by fire in 1915, however the Lambton Hotel survived. This historic building, located at 4066 Old Dundas Street has recently been restored and now serves as a community and heritage centre.
While many of Lambton's first residents were employed at the Lambton Mill, many other residents found employment at the Canadian Pacific Railway yards north of Dundas Street. Lambton was also known for its market gardens which were situated on the fertile plain of the Humber River Valley. These market gardens were still operating up until the 1950's when the Warren Park area was subdivided for residential development.
The natural beauty of the Lambton area with its hills and dales, and old oak trees is shaped by the picturesque Humber River Valley which forms the south and west boundary of this neighbourhood.
Lambton is divided into three distinct pockets. The oldest part of Lambton is centred around Old Dundas Street and is still referred to by its historic name - Lambton Mills. The area north of Dundas Street is known as Lambton Park, while the Lambton community south of Dundas Street in the valley is known as Warren Park, or simply "the Valley".
Historically the Lambton Mills community extended over to the west bank of the Humber River in the Government Road area. However this residential pocket is now generally considered to be part of the larger Kingsway neighbourhood.