In 1884, a pioneer named Alfred Eyles opened a mission station on the site of what is now Outlook Farm. This is the earliest known settlement in Southbroom.

The name "Southbroom" was first mentioned in 1908 when the Swedish Zulu Mission took over the mission from the Eyles family. The Eyles family renamed their home "Soutbroom" as a reminder of one of their family homes in England. Frank and Gilbert Eyles, Alfred's two youngest sons proclaimed the village in 1933.

In 1935, the Southbroom Hotel opened with its famous tidal pool (known as Granny's Pool) opened two years later. The famous golf course opened in 1939; expansion to 18 holes took place in 1948.