The name Jundah means something like "woman" in a local Aboriginal language. It was founded in 1883 by dairy farmers who settled in the area.
The village became famous around 1920 when numerous opals were found in the area around Jundah . Although the opal finds were significant, many seekers had to give up due to a lack of water . In the 1970s and especially in the 1980s, the mines around Jundah (Opalville) were put back into operation. Some of the most expensive opals come from the Jundah region, including the "Galaxy" Boulder Opal, which was found in 1989 and sold in 2003 for over 1.2 million Australian dollars.
Today Jundah is the administrative center for the Barcoo Shire. In Jundah there is a police station, a small shop, a post office and a school.