The oldest beach community in Brevard couty, Melbourne Beach was established in 1883 by a retired Union Army General. He financed the growing of citrus trees and pineapples in the area until the Great Freezes of 1895 wiped out the crops.

A cuaseway was built in 1921 connecting Indialantic (on the north) with the mainland at Melbourne. That led to Melbourne Beach being incorporated as a town in 1923. Melbourne Beach didn't really begin to grow until after World War II. Today the town is rated as one of the ten best retirement bargain places in the US.