The area around Dimbulah was originally home to the Djankun and Kuku Djungan tribe. During the 1920s the Queensland government forcibly removed most of their children, forcing the tribe to scatter.
In the early 1900's the area received an influx of Italian migrants and in 1928 tobacco was introduced, becoming the area's major industry soon after. At its peak, there were 800 growers in the area, producing over 8,000 tonnes (60% of national yield) of tobacco a year.
Tobacco remained the dominant crop until recent years when government policy compelled its demise. Recent attempts at alternative crops such as tea trees, mangoes, sugar cane, coffee, lemons, limes, avocados, papaws, papayas, peanuts, soya beans, lychees, and cash crops (pumpkins, melons, etc.) have met with mixed success.
Local residents enjoy a tropical climate with hot, wet summers and dry, mild winters. There are many sporting clubs including swimming, tennis, horse and pony, lawn bowls, Rhee tae kwon do and soccer. At the time of writing, the town's retail facilities include a bank, post office, chemist, cafe, therapeutic massage, real estate, opp shop, butcher, two salons, clothing store, hardware store, community bank, grocery store, convenience store and petrol station. Community groups include the Dimbulah Community Centre, Lions Club, QCWA, chamber of commerce, museum association, Friulani, Trevisani, and several faith-based groups.