Underwood is named after early settler William Underwood who was a land holder in the Eight Mile Plains district from 1865. He established the Commercial Hotel on his land to the north of the Beenleigh Road intersection. It operated from the early 1870's through to 1895 when it burnt down. Underwood had moved on in the 1880's to manage the Mt Gravatt Hotel. During the late 1890's, Underwood's sons William junior and Walter were horse dealers in Eight Mile Plains, while Arthur was a store keeper and Blacksmith in the Mt Gravatt area. Walter Underwood lived on the corner of Underwood and Logan Roads through to the late 1930's and was involved in the farming and timber getting industries. The suburb was gazetted in 1975 and at the time straddled the boundaries of Brisbane City and Albert Shire.
Today, Underwood is bounded by Millers Road, Underwood Road, The Pacific Motorway, Logan Road and Compton Road. It includes major industrial and shopping precincts, the mail exchange, The Australian Football Club, the Logan Aquatic Centre, as well as residential estates.
