The first beacon in the area was an open coal fire set on Signal Head, with a range of 7 kilometres (4.3 mi; 3.8 nmi).

By 1846 Nobbys Head, originally a small islet more than 60 metres (200 ft) high, was connected to the mainland with a causeway.

The island was reduced in height to improve the sailing conditions and to accommodate a lighthouse and signal station, built in 1858.

The lighthouse was designed by Alexander Dawson, the New South Wales Government Architect.

The original light had an intensity of 20,000 cd and was attended by three lighthouse keepers.