It is named after Lord Melbourne, the British prime minister in the 1830s,[4][5] when the street was originally built.

[7][8] In 1923 Melbourne Road[a] was renamed to Milligan Street[10] and deemed an extension of the existing street of that name when the Perth City Council adopted a committee recommendation: That the name of Melbourne-road be altered to Milligan-street, and that the present Milligan-street and the present Melbourne-road be then regarded as one thoroughfare.

[11] However the name Melbourne Road continued to be used at least until the 1940s.

[14][b] The road was removed in 1974, when the Perth Entertainment Centre was built.

[18][19] In December 2017 the City of Perth Council agreed to a request from Landgate[5][20] and the portion of Milligan Street between Roe and James Streets was renamed back to Melbourne Street.