Situated at the southern end of a peninsula connected to the mainland via a narrow beach, Powles Head was first deemed an important location to guide ships into Trepassy Harbour in 1863. Although no lighthouse was built until 1902, multiple buoys were used in the interim to serve as navigational aids; however these were quickly overwhelmed by the elements. The original Powles head lighthouse was a square, wooden tower with sloping sides and white in colour.

The original wooden tower was replaced by a cast iron tower, also painted white, in 1925. By 1960 however, this tower too was also in need of replacement as it had thoroughly rusted. Therefore, the present structure was built that same year consisting of a combination light and fog alarm building. Power reached the site in 1970 and in 1990 the keeper's dwelling was removed, making the station unmanned.