Completed in 1887 and located on the north side of the inlet, the new lighthouse was based on Light-House Board standard plans with modifications made for the specific site.

In 1897, author and journalist Stephen Crane was en route to cover a brewing revolt against Spanish rule in Cuba, when the ship he was on, the SS Commodore, sank off the coast of Florida.

Crane escaped in a small dinghy with several crewmen, and they eventually sighted and steered for the Mosquito Inlet Light.

At the urging of concerned citizens, the Town of Ponce Inlet accepted the Light Station property from the Coast Guard in 1972, and the Lighthouse Preservation Association was formed to manage the museum.

[1] In 1982 the light was restored to active service, primarily because highrise buildings blocked the Coast Guard's beacon on the other side of the inlet.

The 1904 Barbier, Benard, et Turenne rotating third order Fresnel lens has been restored to service in the tower, which operates today as a private aid to navigation and is maintained by the museum staff.