There is currently a lightship on the end of the sands, on the farthest part out to warn ships. The sands were once covered by two lighthouses on the Kent mainland, one each at the north and south ends of the sands. The southern lighthouse is now owned by the National Trust, and the northern one is still in operation.
When hovercraft ran from Dover they used to make occasional trips to the sands.
An annual cricket match was until 2003 played on the sands at low tide, and a crew filming a reconstruction of this for the BBC television series Coast had to be rescued by the Ramsgate lifeboat when they experienced difficulty in 2006.
Several naval battles have been fought nearby, including the Battle of Goodwin Sands in 1652 and the Battle of Dover Strait in 1917.
Legend holds that the sands were once the fertile low-lying island of Lomea, often equated with an island known to the Romans as Infera Insula ("Low Island"). This, it is said, was owned in the first half of the 11th century by Godwin, Earl of Wessex, after whom the sands are named. When he fell from favour, the land was given to St. Augustine's Abbey, Canterbury, whose abbot failed to maintain the sea walls, leading to the island's destruction, some say in a storm of 1099. However, the island is not mentioned in Domesday Book, suggesting that if it existed it may have been inundated before that work was compiled in 1085–86. The earliest written record of the name "Lomea" seems to be in a 1590 work De Rebus Albionicis by a John Twyne (or Twine), but no authority for the island's existence is given.
Another theory is that the sands' name came from Anglo-Saxon gōd wine = "good friend", an ironic name given by sailors.
In 1974 a plan was put forward to build a third London airport on the Goodwin Sands, with a huge harbour complex, but the idea faded into obscurity.
Phineas received news of the shipwreck at Deal, and was dispatched by the Lord Admiral to attend to the ship and use his best means to save her. He used chain pumps, replaced the rudder, and fitted jury masts, by which effort she was safely brought to Deptford Dock.
Naval vessels lost to the sands included:
The Radio Caroline vessel MV Ross Revenge drifted onto the Sands in November 1991, effectively ending the era of offshore pirate radio in Britain.
Herman Melville mentions them in Moby-Dick, Chapter VII, The Chapel:
R. M. Ballantyne, the noted Scottish writer of adventure stories, published The Floating Light of the Goodwin Sands in 1870.
W. H. Auden quotes the phrase "to set up shop on Goodwin Sands" in his poem In Sickness and in Health. This is a proverbial expression meaning to be shipwrecked.
G. K. Chesterton's poem The Rolling English Road refers to "the night we went to Glastonbury by way of Goodwin Sands."
Ian Fleming refers to the Goodwin Sands in Moonraker, one of the James Bond novels, as well as making them a major plot point in his children's story Chitty Chitty Bang Bang.