Megalong is an Aboriginal word thought to mean 'Valley Under The Rock'. The first record of a European coming to the valley was of Thomas Jones, a natural history specimen collector, who followed the course of Cox's River from Burragorang to Hartley in 1818. The first land was taken up in 1838, by settlers travelling from Burragorang and Camden.

Today the valley is used for farming, but tourism has increased since the historic Six Foot Track was restored. This track was marked out in the 19th century as a bridle trail from Katoomba to Jenolan Caves.The track begins at the Explorers' Tree on the great Western and takes you through Nellie's Glen, past Bonnie Doon Falls, into the Megalong Valley, the historic Megalong Village, the Cox's River, Bowtells Swing Bridge and finishing at Jenolan Caves.