At age 40, Makarov became the third Guild Master of Fairy Tail in the year X736. In the year X741, Makarov received the title of being a Wizard Saint. Having been the Guild Master of Fairy Tail for 48 years, Makarov held the record of being the longest Guild Master of Fairy Tail. During this time, he oversaw the guild's rise in fame of its Mages and their power. The guild was named 'Fairy Tail' as the eternal mystery behind whether Fairies had tails or not, or if they even existed, was like an eternal adventure. Some time during those years, Makarov excommunicated his son, Ivan Dreyar, for unknown reasons, despite the sensitive information he carried about the guild. He mentioned this decision to his grandson Laxus, saying that Ivan was a danger to the guild.

Makarov also held great affection and a strong relationship for his grandson Laxus during the boy's childhood. Somewhere around that time, during a Fantasia Parade, a young Laxus points his index finger in the air in hopes that his grandfather would remember that he was watching him. As a teenager, Laxus started detesting his grandfather because people felt he was only successful due to the fact that he was Makarov's grandson, and then swore that he would one day surpass Makarov and prove himself a man in his own right. Since then, Makarov had regretted his grandson's drastic personality change.

He met Jose Porla six years in the past at the regular meeting where they fought, because of Marakov's bragging and Jose's bad-mouthing of Fairy Tail, ending with Makarov brutally defeating Jose. Jose says that it had been six years since they had stood "face-to-face" indicating they may have fought.

Makarov has been friends with Porlyusica for a considerable amount of time, as she mentions that he had caused a great deal of trouble, even since the "old days". Makarov also took Erza to Porlyusica when she joined the guild in order to fix her damaged eye; from then on, he viewed Erza as sort of the daughter he never had. Because of this favoritism, Erza became unquestionably loyal to him.