Furnace Mill was one of the first two cotton-spinning mills established in Dukinfield, marking the beginning of the town's industrial transformation. It was located in the Bridge Eye† district of Dukinfield, off the north side of Furnace St (53.48333, -2.09277).

The contemporary of Furnace Mill was Dukinfield Old Mill (53.48241, -2.08465) and these were the first two cotton-spinning mills to be established in Dukinfield in 1792. Dukinfield Old Mill was located about 600-yards distant to the east.

Prior to the mill’s construction in 1792, the site was occupied by the Dukinfield Furnace and Foundry, operational from pre-1784, by the proprietor, Richard Crowder, and the local landowner, Mr Astley. The objective of this iron works was to consume local coal and sell pig iron, later expanding into large castings.

In 1792, the site was expanded into textile production when Furnace Mill was built. This mill was water powered and its large waterwheel was powered by the head of water provided by a mill race or leat constructed across the Bridge Eye loop of the river Tame. From the weir in the river Tame to Furnace Mill, the mill race was about 300-yards long.

By 1808, the site had grown into a five-storey range measuring 92 feet by 36 feet, accompanied by a three-storey, square, cotton warehouse. Over the period 1825 to 1868 the mill was expanded and subdivided to be let out to multiple commercial tenants. For example, one section, operated by Leigh & Leton, housed 17 carding engines and spinning mules with 5,400 spindles. Another section was operated by James Ogden & Son, who also operated the nearby Dukinfield New Mill.

As a result of these two pioneer cotton mills there was a growing community of local workers and families. To serve these, the Furnace Hill Sunday School was built on nearby Wharf St in 1825.

The mill's operational history came to a sudden end in Aug 1868, when the entire structure was completely destroyed by a major fire.