The circuit was built between 1959 and 1960 by the Queensland Motor Sporting Club, constructed largely by volunteers using borrowed machinery. Its opening meeting was held on 19 March 1961, and the first international meeting followed the next year, with the feature race won by Jack Brabham in a Cooper-Climax.
The fast and challenging nature of the circuit attracted some of the greatest names in world motorsport during the 1960s and 1970s, including Jim Clark, Jackie Stewart, Jack Brabham, Graham Hill, and Chris Amon. It also proved a formative venue for several prominent Queensland competitors, among them John French, Dick Johnson, Gregg Hansford, Tony Longhurst, Will Power, and five-time 500cc Grand Prix motorcycle world champion Mick Doohan.
Lakeside hosted the Australian Grand Prix in 1966 and again in 1969, both races also counting toward the Tasman Series.
Alongside the two AGP appearances, Lakeside staged standalone Tasman Series rounds in 1964 and 1967. Jack Brabham won the 1964 round and Jim Clark took victory in 1967.
Touring cars were the bedrock of Lakeside's popularity. The venue hosted single-race ATCC titles in 1964 and 1967, then staged ATCC rounds in most years from 1970 to 1998, a total of 29 occasions. The 1981 ATCC round became one of the circuit's defining moments: local hero Dick Johnson, driving with a damaged car, won the race and the championship in front of his home crowd after nearly two decades of perseverance in the sport.
The circuit also hosted the Australian Drivers' Championship for the CAMS Gold Star on 17 occasions between 1963 and 1994, the Australian GT Championship in 1962 and again from 1982 to 1985, the Australian Sports Car Championship, and the Australian Super Touring Championship.
Declining revenues, mounting debts, court proceedings, an increasingly hostile local council, and competition for events from the nearby Queensland Raceway forced the circuit to close in mid-2001, despite national championship racing still being held there as recently as July of that year.
During the seven years it lay dormant, activist groups including Friends of Lakeside campaigned to preserve the venue. Their efforts resulted in the circuit being listed on the Queensland Heritage Register, which prevented the local council from demolishing it.
On 18 December 2007, Pine Rivers Shire Council and Queensland Raceway signed a 30-year lease, with an option for a further 10 years, to operate the facility. The circuit reopened on 5 April 2008 strictly as a local racing venue, with the new operators, who also ran Queensland Raceway, directing higher-profile national meetings to their sister circuit.
During the 2008-09 summer the circuit was temporarily closed for refurbishment. The track was widened to 12 metres at Shell Corner (previously 8 metres), the majority of surface bumps were removed, and a tunnel was added beneath the circuit. Further upgrades in 2011 improved runoff at the inside of Karousel.
Lakeside International Raceway shaped Queensland motorsport across four decades. The circuit's demanding layout earned it a reputation as a developer of talent, with its challenging corners and undulating terrain demanding commitment and precision. Its heritage listing ensured the physical circuit survived the closure period, and the reopened venue continues to serve local club racing and driver training.