The construction of Lion Rock Tunnel started in January 1962.

This tunnel is often described as a by-product of the Plover Cove Scheme, which was a project to build a water supply tunnel through the range of hills separating New Kowloon and the rest of the New Territories.

The toll to traverse the Lion Rock Tunnel is HK$8 each way.

Company Limited successfully bid the contract and took over the management with effect from 1 August 2012.

As the facilities within the tubes of Lion Rock Tunnel suffered from serious deterioration due to ageing, as well as broken concrete on the road surface which caused bumping when vehicles pass through, the Highways Department decided to undergo renovation works upon the tunnels in 2008.