The first camel in Australia was imported from the Canary Islands in 1840 by Horrock. The next major group of 24 camels arrived in 1860 for the ill-fated Burke and Wills expedition. When the explorer Giles used camels for the first time, he traveled 220 miles in eight days without giving them water. Later, he journeyed from Sunbury Downs to Queen Victoria Springs (Western Australia), a distance of 325 miles in 17 days, providing just one bucket of water to each camel after the twelfth day.

Camel studs were established in 1866 by Sir Thomas Elder at Beltana Station in South Australia. These studs, along with others in Western Australia, operated for about 50 years and produced high-quality breeders. Working camels bred in Australia were considered superior to those imported. Nevertheless, imports from Pakistan and India continued until 1907 to meet the demand for large numbers of affordable animals.

Between 1860 and 1907, an estimated 10,000 to 12,000 camels were imported into Australia. These camels were primarily used as draft and riding animals by pioneers exploring and settling the dry interior. Almost all of the camels brought to Australia were one-humped camels (Camelus dromedarius), which are well-suited to hot desert climates like Australia's. Only about 20 two-humped camels (Camelus bactrianus), typically found in cold deserts, were imported.

The large camel teams in Western Australia and Central Australia often consisted of 70 camels and four Afghan handlers. These teams typically traveled 20 to 25 miles per day through desert terrain and collectively carried between 16 and 20 tons of goods. A large bull camel could carry up to 12 hundredweight (600 kg), while smaller camels carried between 6 and 8 hundredweight (300–400 kg).

In Central Australia, camels were integral to the construction of the Overland Telegraph Line, the transportation of supplies to Alice Springs, and the delivery of goods to cattle and sheep stations, missions, and Aboriginal communities. Camels played a vital role in Australia’s interior development. They hauled wagons loaded with wool to the railhead at Oodnadatta and were used to pull scoops and ploughs for building dams or performing other heavy labor tasks.

By the mid-1920s, with the advent of motor vehicles in central Australia, most camels were released, leading to the establishment of free-ranging herds in the semi-arid desert regions of the country.

In the late 1960s, interest in camels was renewed. By 1970, Australia had two camel tourism businesses, both operating in Alice Springs. In 1971, the inaugural Lions Club Camel Cup race was held in Alice Springs. Today, several camel races are held across Australia. These races, typically around 1 km in length, contrast with the long-distance races (10 km or more) held in Saudi Arabia.

Camel meat production began in Alice Springs during the 1980s, marking the start of commercial camel slaughter for human consumption.

In 1994, the Conservation Commission of the Northern Territory conducted a detailed aerial survey over the southern half of the Northern Territory. The survey indicated a population of approximately 60,000 camels in the region. The estimated total camel population across Australia has since grown significantly, with the current figure likely around 200,000.