[1] The Illawarra escarpment is to the west, Dapto is to the north, Jamberoo is to the south and Shellharbour is to the east.

On 9 January 1821 the area around Albion Park was part of a grant of land of over 2000 acres given to Samuel Terry, a former convict who became one of the richest men in New South Wales.

[3] The arrival of the railway line in 1887, and the completion of the road through Macquarie Pass to the Southern Highlands hastened the town's growth.

In order to avoid the highest parts of the ridge between Albion Park and Minnamurra, the railway needed to keep closer to the shore of Lake Illawarra.

Albion Park is also home to various sporting teams such as: Albion Park has the Tongarra Museum, which showcases the history of the region, and the Historical Aircraft Restoration Society Museum located at the Illawarra Regional Airport.