Permanent European settlement began at Point Lonsdale in the latter half of the 19th century with the construction of a lighthouse in 1863 and the extension of the railway line from Geelong to Queenscliff in 1879.

[2] The town is named after police officer William Lonsdale[3] and is the birthplace of former Premier of Victoria Thomas Hollway.

[7] The coastal rock platforms and adjacent waters are included in the Port Phillip Heads Marine National Park.

The Community Celebration of Christmas is run by a committee of volunteers assisted by the local service clubs, Lions and Rotary.

The township of Point Lonsdale has also been used in some episodes of the hit children's series Round the Twist for some of the exterior scenes.

[citation needed] Golfers play at the course of the Lonsdale Links Golf Club on Fellows Road, rated a Top 20 course in Australia,[9] after undergoing a major renovation.