[3] Mulwala is a popular destination for water sports and fishing, especially for tourists from nearby Melbourne, 300 kilometres (190 mi) to the south.

In 1847 James McRae arrived in the district to take charge of "Mulwala" and "Boroge" stations on behalf of the squatter Linbourne.

Mulwala Post Office opened in 1864 for about six weeks, closed due to a large fire, and was reopened on 1 June 1866.

[5] In 1972, Mulwala was the site for a large outdoor pop music festival,[6] which despite boasting big Australian names (Chain, Doug Parkinson, Billy Thorpe and the Aztecs) and some overseas artists (Canned Heat, Stephen Stills & Manassas), was considered a flop, after rain had washed out the site by the third day.

On 21 March 2013, Mulwala was one of the areas affected by a tornado, injuring over 20 people and damaging several buildings and houses.