Around September 1854, Government Resident, Captain Charles Maurice O'Connell instructed Chief Surveyor, Francis MacCabe to select an area to serve as a cemetery for the newly settled township of Port Curtis (later Gladstone). The area selected was on the outskirts of town near the original town water supply, located at Police Creek.

The first burial was that of Irish immigrant Patrick Gettings who died as a result of a head injury, sustained when he fell from his horse. This event took place on Boxing Day, 1856. Eighty-five people including Patrick Gettings were buried in the cemetery before the introduction of the "iron spike" system used to mark graves in 1871. The location of those original graves has been lost over time with the exception of around ten who are marked with stone headstones. 

On October 6, 1980, Benjamin Claydon became the first person to be buried in the new lawn section of the cemetery. This new section is located at the western end of the cemetery and has an alternate entrance on Cemetery Road. The lawn section consists of four sections, with one being specifically for children's graves.

The largest monument in the cemetery is that of Richard Hetherington, the first mayor of Gladstone. He died as a result of a fall into a ship's hold while fulfilling his role as mail contractor. This monument was erected by the people of Gladstone and is inscribed "Erected by the people of Port Curtis in memory of Richard Hetherington. His usefulness and worth. He lost his life discharging his duties as postmaster at Gladstone. 18 January 1870. Aged 44 years."

The Gladstone Regional Council used ground penetrating radar in 2016 to verify the location of all graves in the cemetery. Although this successfully located actual burials, a number of interments remain categorized as unknown.