Prior to European settlement, the area around Coburg and Merri Creek was occupied by the Woiwurrung speaking Wurundjeri people of the Kulin Nation.

Coburg was first surveyed by Robert Hoddle in 1837 – 1838, and he recorded that a Mr Hyatt had a sheep station and hut on the east bank of the Merri Creek, near present Outlook Road.

In 1840, the village was named Pentridge by a surveyor called Henry Foot, who lived and worked near Merri Creek.

[2][3] Dr Farquhar McCrae, a wealthy surgeon, purchased 600 acres (2.4 km2) in the area which he called Moreland.

In 1858, water mains from Yan Yean were connected and the first local paper, the Brunswick and Pentridge Press, was started.

In 1867, a public meeting was called to change the name of the district, as residents were stigmatised and embarrassed at living in a suburb principally known for its gaol, Pentridge Prison.

Robert Mailer of Glencairn suggested that the suburb name be changed to Coburg, inspired by the impending visit to the colony of the Duke of Edinburgh, who was a member of the royal house of Saxe-Coburg and Gotha.

The reserve was immensely popular, with diving boards, wading pools, kiosk and gardens, and continues to be a favourite picnic spot, also accessed by the Merri Creek Trail.

[6] The cultural diversity of Coburg is reflected in many ways – through its local street and music festivals, variety of cafes, bakeries, restaurants and grocery shops stocking ingredients from around the world.

Coburg's main commercial precinct comprises about 250 shops, a small indoor market, several supermarkets such as Coles and Woolworths and discount stores such as Dimmeys, arranged around large, ground level car parks.

While Coburg Shopping Centre is very busy during the day, its modest number of restaurants, cafes and bars means that it can be quiet in the evenings.

The commercial strip of Sydney Road is continuous from Coburg's southern neighbour Brunswick, but it has a very different character, having so far remained ungentrified.

[19] Major features of the area include the Sydney Road commercial area, the Merri-bek City Council civic centre precinct on Bell Street including the Coburg City Hall, La Rose house (Victoria's oldest known private dwelling), the John Fawkner Hospital on Moreland Road, and Lake Reserve on Merri Creek.

The suburb's most famous landmark is HM Prison Pentridge, which has recently been redeveloped into a housing estate.

Land prices have risen considerably since 2001, with The Grove long regarded the most prestigious street in the suburb.