Buninyong was proclaimed a town on 27 June 1851 on the same day as Winchelsea, Portarlington, Longwood, Avenel, Cavendish, Euroa and Gisborne.

[1] The name originates from an Aboriginal word also recorded as 'Buninyouang', said to mean 'man lying on his back with his knees raised', which is in reference to the shape of Mount Buninyong.

Buninyong has an important place in history as one of the principal inland communities of pre-gold rush Victoria.

A significant figure in Buninyong's gold rush era was Henry Joseph Desoza.

[12] Desoza was a wealthy philanthropist who made his fortune by both speculation and the leasing of both land and machinery to gold mining companies.

In a peculiar ceremony in 1883 he was crowned with a circlet of gold mined from The Desoza Freehold.

[14][15] Buninyong's landmarks include Mount Buninyong (volcanic mountain), gardens and the many historic buildings, including the Town Hall, Crown Hotel, Holy Trinity Church among others.