[2][3] It was established around the Mourilyan sugar mill which provided much of the employment in the area until it was destroyed by Cyclone Larry on 20 March 2006.

Excavation of the site was undertaken mainly by Kanakas, with assistance from Chinese and Anglo-Saxon labourers.

[citation needed] In March 2006 Cyclone Larry caused substantial damage to many households in the area, and destroyed the town's main source of employment.

A major effort by the Australian Defence Force helped restore Mourilyan Primary School to functioning capacity.

Mourilyan State School opened on 29 January 1908 and as of July 2017, educates 167 students from Prep to Year 6.