New Jersey was established by royal charter in 1664. Years later, the land was divided in two, and West Jersey was divided into tenths. The first and second tenths became Burlington County, while the third and fourth tenths became Gloucester County. The land that is now Magnolia was in the third tenth, which in the 1800s became part of Camden County.

One of the first roads laid out in West Jersey was Old Salem Road, in 1681. Later called Mansion Road, the street is now Warwick Road, which runs through Magnolia.

Ownership of land in Magnolia can be traced to 1682 and a man named William Albertson Sr. The land was passed down through four generations of Albertsons. The town was originally called Greenland - the name coming from the green clay marl present throughout the town. Much marl can still be found there today.

Evesham Road was laid out in 1808 and remained a dirt path until it was paved in 1916. The White Horse Pike was established in 1854. By 1877, about 30 homes existed in the area.

The name Magnolia surfaced in 1888 when a builder decided to name the railroad station after the magnolia tree on the Albertson property.

The only cemetery in the borough is at the United Methodist Church at Monroe and Gloucester Avenues. The church was established in 1815, and the cemetery soon after. Veterans from the Revolutionary and Civil Wars are buried there.

The Fire Department was incorporated before the borough. On Nov. 14, 1893, a group of men organized the fire company, and the earliest meetings were held at members' homes. By 1899, a resident had donated a tract of land at 208 Jackson Ave., and a firehouse was built.

The Fire Department moved to Evesham and Warwick Roads in 1929. In May 1964, a fire destroyed a major portion of the building. That August, another blaze swept through the building, destroying it. The firehouse was rebuilt at the same location.

In 1903, a trolley line was built parallel to the Reading Railroad to take travelers to Clementon Park to swim and picnic.

There was an unsuccessful attempt in 1913 to incorporate Magnolia. Before its incorporation two years later, half of Magnolia was in Centre Township and half in Clementon. At the time of its incorporation, Magnolia had 1,000 residents.

A part-time police force was established in the 1940s. The officers used their own cars and were paid 50 cents an hour. It was not until 1958 that there was a full-time police force in town, consisting of two officers. Today there are 11 full-time officers and eight part-time officers.

The farms have given way to housing developments, but industry has not moved in, allowing Magnolia to remain mostly residential.