In 2014 Wheatley was admitted by the University of Sydney to the degree of Doctor of Letters (honoris causa), in recognition of 'her exceptional creative achievements in the field of children's and adult literature, her work as a historian and her contribution to our understanding of Indigenous issues, cultural diversity, equity and social justice and the environment through story'.

On her return to Australia in 1978 Wheatley lived in the Sydney suburb of Newtown, which provided the setting for her first three books — Five Times Dizzy, Dancing in the Anzac Deli and The House that was Eureka.

Wheatley also used her background as a historian in the writing of the historical novel, The House That Was Eureka (1986), set in the turbulent anti-eviction battles of the Great Depression.

While Wheatley was producing these books for children and young adults, she was also researching and writing a biography of the acclaimed Australian author, Charmian Clift.

This journey began during the period 1998 to 2001, when Wheatley and Searle worked as consultants at the school at Papunya (an Aboriginal community in the Western Desert, Northern Territory).

While assisting the Anangu staff and students to develop resources for their curriculum, the two consultants helped produce the multi-award-winning Papunya School Book of Country and History (Allen & Unwin, 2002).