Hallam station opened on 1 December 1880 as a single platform, just over three years after the railway line from Dandenong was extended to Pakenham.

[4] In 1959, flashing light signals replaced hand gates at the former Hallam South Road level crossing, which was located at the down end of the station,[4] with boom barriers provided in 1985.

[9] On 4 May 2010, as part of the 2010/2011 State Budget, $83.7 million was allocated to upgrade Hallam to a premium station, along with nineteen others.

[16] On 2 April 2022, Hallam South Road reopened to traffic after being closed for fourteen days due to the removal works, resurfacing and installation of a new signalised intersection at the corner of the stations' northern car park and Hallam South Road.

Cranbourne Transit operates three bus routes via Hallam station, under contract to Public Transport Victoria: Ventura Bus Lines operates two routes via Hallam station, under contract to Public Transport Victoria: