[1] Banana is located at the intersection of the Dawson and Leichhardt highways, 46 kilometres (29 mi) west of the shire's administrative centre, Biloela.

Gangalu (Gangulu, Kangulu, Kanolu, Kaangooloo, Khangulu) is an Australian Aboriginal language spoken on Gangula country.

The Gangula language region includes the towns of Clermont and Springsure extending south towards the Dawson River.

[4] In 1853, James, Norman and Charles Leith-Hay established the Rannes pastoral lease and Banana was an outstation of this property.

Banana became its own squatting leasehold sheep station property in 1855 with the Leith-Hays and Thomas Holt holding the licence.

In April 1858, a number of Aboriginal people in an unprovoked attack, murdered 4 men at Camboon and had stolen a carbine, gun powder and balls, and some axes.