Yellowdine was initially planned in 1895 as a railway siding along the Coolgardie to Southern Cross railway line that was opened in 1896.

Once gold was discovered at Mount Palmer close to Yellowdine in 1934 the government began to develop the siding as a townsite that was later gazetted in 1935.

The name of the town is believed to be aboriginal in origin, a misspelling of Yelladine, although its meaning is unknown.

Yellowdine Roadhouse is a popular stop for truckies and other connoisseurs of roadkill although one must be ever mindful that the standard of the culinary offering is dependent on the skills of the baitlayer ensconced in the kitchen.

Fuel availability has ranged from 24/7 to none.