The Ellerslie neighbourhood was planned and built in the early 2000s. Construction in this community was rapid, and as of 2008, only small, residentially designated pockets have yet to experience construction. The neighbourhood is bounded by Anthony Henday Drive to the north, 91st Street/Parsons Road to the west, Ellerslie Road to the south, and 66th Avenue to the east.

Residential structure types within Ellerslie are diverse, ranging from single- and semi-detached housing to row housing and low-rise apartments. Pre-existing country-residential homes, on lots approximately one hectare in size, are located in the eastern portion of the neighbourhood. The neighbourhood features several natural tree stands and many small parks, connected via a series of strategically placed pathways, which provide good open space and recreation amenities for residents.

Ellerslie was planned as a “neighbourhood unit,” which means that the school/park and community facilities are to be located at the centre of the neighbourhood, situated well away from traffic on the arterial roads that surround the neighbourhood, and basic commercial, institutional, and some service needs can be met within the community itself.

Ellerslie takes advantage of the area's natural features, access to major transportation facilities, and other locational attributes, such as commercial and institutional assets within the surrounding area. In addition to regional shopping attractions such as the nearby South Edmonton Common shopping area to the north, Ellerslie includes neighbourhood-level commercial amenities for residents.

The name Ellerslie has been used to designate this area since the turn of the 20th century. Some sources indicate that the name was likely derived from the Ellerslie House, believed to be the birthplace of William Wallace, a Scottish insurgent against Edward I of England. Other sources believe this area was named by the brothers John and James McLaggan, owners of the first store and post office in the area, after a character in a novel by Sir William Scott. The Ellerslie School District was established in 1895, and the post office began operating in 1896.

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