Toolooa borders Telina, South Gladstone, and Glen Eden and is close to The Botanical Gardens.

The suburb is bounded to the west by Glenlyon Road and to the north and east by the Moura railway line.

[3] The name Toolooa is believed to be derived from the Aboriginal name in the Gurang/Goeng language for nearby Barney Point and the clan of Indigenous Australians who lived in the area.

[5] In 1900 the Bundaberg firm Messrs H. A. Skyring and Sons established a large sawmill in the area near the railway line.

[12] Toolooa State High School opened on 27 January 1981 with 200 Year-8 students and 11 teachers.