The territory of modern Frankston was originally inhabited by the Bunurong people. The history of European settlement in these lands dates back to the mid-19th century. The official milestone in the establishment of the settlement is considered to be 1854, when the first land sales took place here. There are several versions of the origin of the city's name: it may have been named after General Thomas Picton or received its name from one of the early settlers, Charles Franks.
Frankston's transformation from a small village into a significant regional center was facilitated by its advantageous geographical location on the shores of Port Phillip Bay, which made the city the natural gateway to the Mornington Peninsula. The development of transport infrastructure also played a vital role: the construction of the pier in 1857 and, most significantly, the opening of the railway line in 1882. The arrival of the train, connecting Frankston with Melbourne, gave a powerful impetus to population growth and trade.
In the early decades, the local economy relied on fishing, agriculture, and resource harvesting. However, thanks to convenient transport links and picturesque views, the city began to transform rapidly. By the late 19th century, Frankston had acquired the status of a popular seaside resort for residents of the metropolis. Clean beaches attracted vacationers, stimulating the rapid development of the service sector and the hotel business.