The town's name derives from the word willangga the Australian aborigines from. However, it is controversial whether the place of the green trees or the black duck is meant.
The first piece of land in the area was bought by Edward Moore in 1839. The city itself was measured and identified a year later. Around this time, the first slate quarry was also put into operation. Because of its high quality, Port Willunga slate was shipped across Australia. It was not until the 1890s that production declined and Willunga became an important grain growing area . Today Willunga is best known for its almonds . Every year in July, the Almond Blossom Festival (German: Almond Blossom Festival ) takes place.
Since 1999 Willunga has been the start and finish of the fourth stage of the Tour Down Under bicycle race .