The State appointed a Central Park Commission to oversee the development of the park, and in 1857 the commission held a landscape design contest. Writer Frederick Law Olmsted and English architect Calvert Vaux developed the so-called "Greensward Plan", which was selected as the winning design. According to Olmsted, the park was "of great importance as the first real Park made in this century a democratic development of the highest significance...", a view probably inspired by his stay, and various trips in Europe in 1850. During that trip he visited several parks, and was in particular impressed by Birkenhead Park near Liverpool, England, which opened in 1847 as the first publicly funded park in the world.

Several influences came together in the design. Landscaped cemeteries, such as Mount Auburn (Cambridge, Massachusetts) and Green-Wood (Brooklyn, New York) had set an example of idyllic, naturalistic landscapes. The most influential innovations in the Central Park design were the "separate circulation systems" for pedestrians, horseback riders, and pleasure vehicles. The "crosstown" commercial traffic was entirely concealed in sunken roadways screened with densely planted shrub belts, so as not to disturb the impression of a rustic scene. The Greensward plan called for some 36 bridges, all designed by Vaux, ranging from rugged spans of Manhattan schist or granite, to lacy neo-gothic cast iron, no two alike. The ensemble of the formal line of the Mall's doubled allees of elms culminating at Bethesda Terrace, with a composed view beyond of lake and woodland was at the heart of the larger design.

Before the construction of the park could start, the area had to be cleared of its inhabitants, most of whom were quite poor and either free African-Americans or immigrants of either German or Irish origin. Most of them lived in smaller villages, such as Seneca Village, Harsenville, the Piggery District or the Convent of the Sisters of Charity. The roughly 1,600 working-class residents occupying the area at the time were evicted under the rule of eminent domain during 1857, and Seneca Village and parts of the other communities were torn down and removed in order to make room for the park. The person responsible for carrying out the evictions was the great-great grandfather of future New York Yankee Joe Pepitone.

Calvert Vaux

During the construction of the park, Olmsted fought constant battles with the Park Commissioners, many of whom were appointees of the city's Democratic machine. In 1860, he was forced out for the first of many times as Central Park's Superintendent, and was replaced by Andrew Haswell Green, the former president of New York City's Board of Education took over as the chairman of the commission. Despite the fact that he had relatively little experience, he still managed to accelerate the construction, as well as to finalize the negotiations for the purchase of an additional 65 acres at the north end of the park between 106th and 110th Streets, which would be used as the 'rugged' part of the park, its swampy northeast corner dredged and reconstructed as the Harlem Meer.

Between 1860 and 1873, the construction of the park had come a long way, and most of the major hurdles had been overcome. During this period, more than 500,000 cubic feet of topsoil had been transported in from New Jersey, as the original soil wasn't good enough to sustain the various trees, shrubs and the plants the Greensward Plan called for. When the park was officially completed in 1873, more than ten million cartloads of material, including soil and rocks which were to be removed from the area had been manually dug up, and transported out of the park. Also included were the more than four million trees, shrubs and plants representing the approximately 1,500 species which were to lay the foundation for today's park.