Ferguson was born in Belfast and attended Rockport School in Holywood, County Down, where his musical talent was recognized, leading to several school prizes. The pianist Harold Samuel heard him in 1922 and encouraged his parents to allow him to travel to London to become his pupil. Following further studies at Westminster School, Ferguson entered the Royal College of Music in 1924 to study composition with R. O. Morris and Ralph Vaughan Williams. He also studied conducting with Malcolm Sargent and formed a friendship with fellow-student Gerald Finzi with whom he attended Richard Strauss's Alpine Symphony at the Royal Albert Hall.