[citation needed] The late 19th century saw substantial residential and commercial development such that by 1891 Prahran had a population of almost 40,000 and Malvern 11,000.

In 2015, the new Stonnington City Centre, opposite at 311 Glenferrie Road, was opened and the Malvern Town Hall reverted to its original name.

The name Stonnington comes from Stonington mansion, the Charles D'Ebro-designed mansion built in 1890 for a founding partner of Cobb & Co, John Wagner, who named the house after his wife's birthplace in Stonington, Connecticut, USA.

[3] Prior to European settlement, the land of the City of Stonnington was occupied by the Wurundjeri, an Indigenous Australian Woiwurrung speaking people of the Kulin nation.

The establishment of European settlers in what was then the Port Phillip District of New South Wales in 1835, was soon followed by pastoralist John Gardiner, together with Joseph Hawdon and John Hepburn, driving cattle south from Yass to Kooyong Koot (later named Gardiner's) Creek, in the area now known as Malvern and establishing a homestead and grazing property.

This area was subdivided into much smaller blocks, for workman's cottages and later to house gold-rush immigrants.

The early 1850s saw the return of many miners from the gold diggings to Prahran, resulting in increased development and the gazetting as a municipality in 1855.

The western part of the city, around South Yarra, Prahran and Windsor, were originally part of the Yarra River flood plain and much of the area was covered by swamps, bogs, and creeks, formed from the run-off from the Malvern Hills to the east.

The Albert Park Lake to the west is a remnant of the original flood plain.

Most private schools are administered by their own boards and receive a government subsidy besides having their own fee structure.

The Cranbourne, Pakenham and Frankston railway lines provide a regular service to South Yarra, Hawksburn, Toorak, Armadale and Malvern stations.

The Sandringham railway line services South Yarra, Prahran and Windsor stations and the Glen Waverley line runs along the northern boundary of Stonnington to Heyington, Kooyong, Tooronga, Gardiner, Glen Iris, Darling, East Malvern and Holmesglen stations.

88.3 Southern FM is a local community radio station that includes Stonnington in its licence area.