Together with the nearby white Queenscliff Low Light, it was built in 1862 to replace the former sandstone lighthouse of 1843 on the same site which was underpowered and deteriorating.

The black lighthouse is one of four in Queenscliff that are used as a leading line to guide ships through the notoriously dangerous mouth of Port Phillip Bay.

Strangely, although Shortland's Bluff on which it is built is 20m or more above sea level, it was designed as a wave-washed lighthouse, with curved walls to deflect shock from waves, and with an entrance 5m above the base which is still visible.

They neared the tall, granite lighthouse at the point, with the flagstaff at its side where incoming steamers were signalled; and as soon as they had rounded this corner they were in view of the Heads themselves.

Then, having made a sharp turn to the left, the boat crossed to the opposite coast, and steamed past barrack-like buildings lying asleep in the fierce sunshine of the afternoon; and, in due course, it stopped at Laura's destination.