In medieval times, the castle was involved in many a family feud and encounters with Scottish reivers. The slaying of Sir Albany Featherstonehaugh in 1530 by a party of Ridleys, a result, it is believed, of a prevailing deadly feud. The location of this incident is still named as Deadman's Haugh, about a mile from the castle, across the river. The old tower is over seven hundred years old and now forms part of the building which was extended to make a home after the Border peace in the 17th century.

Like any self respecting castle Featherstone has a ghost, or rather a whole lot of them. A lady had been forced into a marriage against her will, a familiar story. After the ceremony, the guests and the bride set out on a hunt in the nearby woods with the intention of returning in time for the banquet which had been arranged for later that evening. However, they were ambushed by the lady’s lover and his friends, and the whole party was killed. In the confusion of the fight the bride, too, was slain. Overcome by grief at the death of his sweetheart, the lover killed himself. Meanwhile, the feast had been prepared and the baron awaited the return of the party. It was not until midnight when the doors opened and in came the bridegroom and his guests, bloodstained and disheveled, and they took their seats in absolute silence. Then suddenly, to his horror, the baron realised that these were not actual people. He felt a cold blast sweep across the hall, and the group faded away. It is said that every year at the same time of day the ghostly bridal party may be seen riding in the castle woods.