He previously spent two loan spells with Nuneaton Town.BCFC
The loan spell runs from today 4 January, until 4 February 2019, with the potential to extend.
Twenty-two-year McFarlane has yet to make his Blues First Team bow.
However, he has been an ever present for the Club's Under-23s side this season, starting all 21 games and scoring 11 goals.
He previously spent two loan spells with Nuneaton Town.
Barrow play in the National League, the top tier of non-league football and are currently in 11th spot.
They are next in league action tomorrow (Saturday) when they travel to Havant & Waterlooville