The traditional owners were the Kaurna people. The Kaurna name for Carrickalinga is said to have been Karrakardlangga, meaning 'place for redgum firewood'.

Today Carrickalinga is a popular holiday destination. In the early days after the arrival on European settlers, however, it was agricultural land. One of the early farms was that of William Barrett, who built a home later known as Devonshire Farm, which was bought by Edwin Davey in 1903. Another very successful farm in the area was Forktree Station, on the hill overlooking Carrickalinga. The old shearing shed is now used by Forktree Brewing for a very popular bar and restaurant.

In 1923 Carrickalinga boasted a jetty. The site was not a good choice due to its exposed position, and after a period of about three months it was abandoned as a port, and the jetty was eventually demolished.