The name derived from the former town of Airlie and unbounded locality of Airlie Beach. Airlie was named following a request by the Lands Department in December 1935 for the
Proserpine Shire Council to provide a name for a new sub-division on the coast. Airlie Beach Post Office opened on 2 November 1959. In December 1956, 18 allotments were offered for auction as Perpetual Town Leases by the Department of Public Lands office. The map advertising the auction states the allotments were situated approximately 15 miles north-east of Proserpine.
Busking was made legal in June 2010 through an adopted draft policy created by
Whitsunday Regional Council. In the 2010s, there were several shark attacks off the coast of Airlie Beach. In 2018, there were 2 near fatal attacks and another attack occurred on 29 October 2019. Airlie Beach has a high number of residents working in the tourism and hospitality industries and in 2020 the town was named one of the most likely Australian towns to suffer for the longest from the economic downturn caused by the
2020 Coronavirus pandemic. == Demographics ==