The present Shire of Mukinbudin was settled by pastoralists who in the 1870s took up large leases in excess of 20,000 acres (81 km2) to run sheep and by sandalwood cutters and miners en route to the goldfields.

An extension of the Mount Marshall railway line to Mukinbudin and Lake Brown was approved in 1922 and opened in October 1923.

In 1932 the Wheat Pool of Western Australia announced that the town would have two grain elevators, each fitted with an engine, installed at the railway siding.

[3] The town was hit by a wild storm in February 2011 and was lashed by strong winds with gusts over 125 km/h,[4] large hailstones and experienced some flooding.

[5] Polling place statistics are shown below showing the votes from Mukinbudin in the federal and state elections as indicated.