In 1998, a $200 million redevelopment and expansion began to double the size of the complex, which made it Western Australia's biggest shopping centre.

This development included a Kmart, Coles, Rebel Sport, Lincraft, Harris Scarfe, Red Dot Stores, relocated Woolworths, consolidated Myer store, new Hoyts Cinema and the Al Fresco dining area with four dining retailers, a new food court and over 100 new retailers.

Harris Scarfe closed in 2001 and was replaced with a larger Red Dot, Chain Reaction, Retravision and Drummond Golf.

The minor redevelopment included a new mall with JB Hi-Fi, Kathmandu, The Reject Shop, Good Life Health Clubs and a number of banks and restaurants.

The introduction of David Jones was planned to anchor a new fashion mall home to more than 60 new stores, a multi-deck carpark, an open-air lifestyle and leisure precinct, a fully refurbished 14-screen Hoyts cinema and 12 new restaurants.

[1] From 6 October 2023, Westfield Carousel began large scale Friday night trading, becoming the first suburban shopping centre in Perth to do so.

[5] As of July 2020,[update] Westfield Carousel had 362 stores, 109,795 m2 (1,181,820 sq ft) of gross lettable area and 4,300 car spaces.