The circuit was originally known as Mallala Race Circuit. South Australia had been allocated the 1961 Australian Grand Prix under the state rotation system then in use, but the Confederation of Australian Motor Sport informed organisers that the existing Port Wakefield Circuit was no longer adequate. A group of enthusiasts purchased the land of the former RAAF Base at public auction in 1961 to create a suitable replacement.
The opening meeting was held on 19 August 1961, with Bib Stillwell winning in a Cooper Climax. Just weeks later, the 1961 Australian Grand Prix was held as the circuit's second event. Lex Davison won his fourth and final Australian Grand Prix driving a Cooper T51 Coventry Climax FPF, though David McKay crossed the line first only to be penalised 60 seconds for an alleged jump start.
The original 3.379 km layout was reduced to 2.601 km in late 1964 when Bosch Curve was repositioned closer to the Dunlop Curve Grandstand, removing the north-eastern leg. Mallala hosted a round of the Australian Drivers' Championship each year from 1961 to 1971, plus rounds of the Australian Touring Car Championship in 1963 and from 1969 to 1971.
In 1971 the property was purchased by Keith Williams, who was simultaneously developing the new Adelaide International Raceway. Williams obtained a court-ordered covenant preventing motor sport activities at Mallala to protect his incoming venue, and the circuit closed.
After motor racing ceased, the circuit served as a manufacturer test facility. Chrysler Australia, based in Adelaide, used Mallala regularly, with factory-backed drivers Leo and Pete Geoghegan testing vehicles including the Chrysler Valiant Charger. Elfin Sports Cars, founded by Garrie Cooper and producing a range of sports and open-wheel race cars in Adelaide, also used Mallala as their primary test circuit.
Clem Smith, a South Australian businessman and Sports Sedan racer, purchased the Mallala site in 1977. A Supreme Court ruling declared the Williams covenant unenforceable, allowing Smith to redevelop the facility. Motorcycle racing resumed in 1980, car racing in 1982, under the new name Mallala Motor Sport Park.
The circuit was initially granted only a "B" track licence, limiting it to club-level events. Historic Mallala, held each Easter, became the anchor event of this period. An upgrade to an "A" licence in 1984 opened the door to national championship rounds. On 7 May 1989, Mallala hosted the inaugural Formula Holden race as part of the Australian Drivers' Championship, with Mark McLaughlin winning in a locally-designed and built Elfin FA891.
The Australian Touring Car Championship returned to Mallala each year from 1989 to 1998 — a return met with mixed reactions from drivers. Jim Richards praised the tight circuit for equalising the turbocharged Ford Sierra RS500 advantage, while Dick Johnson openly criticised its facilities. Ironically, Johnson won the 1989 ATCC race at Mallala by 29 seconds after qualifying on pole. Clem Smith invested championship revenues in sustained facility improvements throughout this period. When the series became the Shell Championship Series in 1999, all South Australian rounds transferred to the new Adelaide Parklands Street Circuit.
Following the death of Clem Smith in February 2017, Peregrine Corporation — owners of The Bend Motorsport Park and the Shahin family business — purchased Mallala Motor Sport Park and assumed operations in May 2017.
As of the mid-2020s, Mallala hosts the Historic Mallala meeting each Easter, a round of the Shannons Nationals Motor Racing Championships, the Australian Formula Ford Championship, and regular drift events. The South Australia Police use the circuit for driver training and assessment. The Mallanats annual car show, modelled on the Summernats format, has been held at the venue since 2009.