Jalan Kayu was built in 1928 when the first Royal Air Force base outside the United Kingdom was established in Singapore, in the northern part of the island.

A small section of Jalan Kayu between Yio Chu Kang Road and Sengkang West Avenue was closed on 13 October 2013, to make way for the development of the Seletar Aerospace Park, as well as for the construction of Sengkang West Road.

[4] The southern portion of the road (after the junction with Sengkang West Way) is now home to new HDB housing estates of the Fernvale neighborhood.

Jalan Kayu is served by buses originating from Sengkang Bus Interchange and from other parts of the island.

Public bus services that call at the bus stops before and after Seletar Camp Gates are as follows: *858B is a short-trip service that begins at Bef Seletar Camp G and terminates at Aft Seletar Camp G. There was formerly a bus terminal at the circus which was closed in 2003 after the North East line was opened, with 103 being the only service formerly terminating there to continue to serve the area till today.