The Marysville Post Office opened on 1 March 1865 followed by a school in 1870, and a public hall, library and mechanics institute in 1890.

[12] At this time a rail service operated between Melbourne and nearby Healesville,[12] and the town became a popular destination for couples on their honeymoon.

The town came under serious threat during the Black Friday bushfires in 1939, residents saw the fire cross from Mt Gorden to Mount Margaret.

[15] On 7 February 2009, a bushfire destroyed most of the town, including the primary school,[16] police station,[17] The Cumberland,[18] and almost all of its houses.

Residents able to leave the town just prior to the fire were directed to a temporary relief centre at Alexandra High School.

[4] The entire town was declared a crime scene and was effectively closed off while Victorian and Federal police recovered bodies and conducted investigations.

[19] In February 2014 a class action trial against electricity company SP AusNet was due to begin in the Victorian Supreme Court.

There are many tourist attractions throughout the area, such as Bruno's Sculpture Garden (which was badly damaged in the 2009 fires but mostly restored since), and Steavenson Falls.