The name Graeme is a Scottish variant of the name Graham, which originated from the Old English word "graem" or "greme," meaning "fierce" or "ill-tempered." It is believed to have been derived from the Old English words "græg" (gray) and "hæm" (home).

The name first appeared in historical records in the 12th century, when the powerful Graham family emerged in Scotland. The Grahams were a prominent noble family who played a significant role in Scottish history, particularly during the Wars of Scottish Independence against England in the 13th and 14th centuries.

One of the earliest recorded bearers of the name was Sir William Graham, who fought alongside William Wallace and Robert the Bruce in the Scottish Wars of Independence in the late 13th and early 14th centuries. Another notable figure was John Graham, 3rd Earl of Menteith, who was a Scottish nobleman and supporter of Robert the Bruce during the same period.

In the 16th century, the name Graeme emerged as a variant spelling of Graham, possibly due to regional pronunciation differences or scribal errors. This variant became particularly popular in Scotland and was borne by several notable figures, including Graeme of Inchbrakie, a Scottish clan chief in the late 16th century.

One of the most famous historical figures with the name Graeme was James Graeme, 1st Marquess of Montrose (1612-1650), a Scottish nobleman, soldier, and poet who played a significant role in the Wars of the Three Kingdoms. He was a renowned military leader and a staunch supporter of the Scottish Crown.

In the 18th century, the name Graeme was borne by Graeme of Gorthie, a Scottish clan chief, and Graeme Mercer Adam (1839-1912), a Scottish-born Australian politician and judge.

Another noteworthy bearer of the name was Graeme Allwright (1926-2020), a French singer and songwriter of Scottish descent, best known for his interpretations of American folk and protest songs.