Evandale was first established as a military post on the orders of Governor Macquarie in 1811 when the road from Hobart to Launceston crossed the South Esk River at this location – not as is the case today where it crosses at Perth, a short distance away.

It was known variously as Collins Hill, Paterson’s Plains, Gordon Plains, and Morven before the town's name was changed to Evansdale and lastly to Evandale in 1836 - probably named after George William Evans (1750–1852) who was sent to Van Diemen’s Land in 1812 by Macquarie to re-survey Hobart. He was eventually appointed Surveyor-General of Van Diemen's Land.

The town is associated with several famous names. John Batman lived here before setting off in 1835 to found Melbourne, while John Kelly, father of Ned Kelly, Australia's most notorious bushranger, served time as a prisoner at Evandale.

Evandale is the birthplace of Lt Col. Harry Murray VC, CMG, DSO and Bar, the most highly decorated allied soldier in World War One. His deeds are celebrated with a statue in the gardens at the end of Trafalgar Lane in the town.

In February 1917, Murray commanded a company during the battalion's attack on the German position of Stormy Trench.

During the engagement, the company was able to capture the position and repulse three fierce counter-attacks, with Murray often leading bayonet and bombing charges himself. For his actions during the battle, Murray was awarded the Victoria Cross.

Evandale today is a National Trust classified Georgian village, popular with tourists for its unspoiled heritage buildings notably St Andrews Church, the Uniting Church, with its classical bell tower and Doric columns.

Other notable buildings include Blenheim (1832) in High Street, Royal Oak (1840) and adjoining stables now Evandale Antiques, Clarendon Arms Hotel (1847) and Fallgrove (1826) in Russell Street, Solomon House (1836), and the saddler's shop (1840) at the intersection of Russell Street and High Street.

Every year, avid cyclists suit up in skin-hugging lycra for a national championship road race. But wait till you see their bikes - you'll never associate penny farthings with straight backs and top hats again.

These National Penny Farthing Championships are a highlight of the Evandale Village Fair, held on the last Saturday in February.

In 1876, the Tasmanian Main Line Company opened a narrow (1067 mm) gauge line from Hobart to Evandale where it connected with the broad (1600 mm) gauge Launceston and Western Railway from Launceston and Deloraine built in 1871. It remained a break-of-gauge station until the Evandale-Deloraine line was converted to narrow gauge in 1888.

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