Hawthorn Woods is located in Lake County in the northwest suburbs and 32 miles from the loop. Hawthorn woods was vacated by the Potawatomi following an agreement with the United States in 1829. Soon after that, Dutch farmers settled in the area. In 1945 Matt and Germaine Larson purchased a property that was located on a forest farm off Old McHenry Road.

Oak, hickory, hawthorn, and elm trees surrounded the farmhouse. In 1953 Matt Larson began development of the wooded area with sprawling ranch-style houses on large lots. Wanting to retain the rural atmosphere and avoid the overcutting of trees, he stipulated that no trees could be removed without his permission. The houses were mainly cedar and redwood, and all building materials had to meet Larson's approval. In 1967 a barn from the original farm became the village hall.

The town of Hawthorn Woods consisted of only 141 residents on 976 acres at incorporation in 1958. Incorporation resulted from citizens wishing to protect their environment from the dense development proposed by Chicago builder Joseph Brickman. A limit on lot size for new development was set at a minimum of one acre.

The village grew to 6,002 by 2000; the majority of homeowners are white-collar professionals. Development has remained limited; only custom houses may be built in Hawthorn Woods. House styles range from historic farmhouses to mansions.