Prior to Yarrawarrah being recognised as a suburb by Geographical Names Board in 1971, the area was known as North Engadine.

Charles McAlister, a pioneering developer of the Engadine area took up the first portions of crown land in 1887, likely offered for sale due to the opening of the Illawarra railway line to Waterfall earlier in 1886.

In the 1930s, families were relocated to the area from existing unemployment camps in Cook Park at Botany Bay.

[citation needed] In 1968, the primary school was built on Old Bush Road, with a proposed name of Engadine North, however, this was rejected by the Geographical Names Board, instead settling on Yarrawarrah (being an Aboriginal word for mountain ash and a nearby ridgeline).

It is a hilly suburb stretching to the valley of Engadine, with several fire trail heads (Turrella, Fairy Creek).

[3] Yarrawarrah has a small shopping village with a landmark windmill, containing a medical practice, pharmacy hair salon, Italian and Chinese restaurants, and a convenience store.

Yarrawarrah Public School was established in 1968 is located behind the shopping village on Old Bush Road.