The base was constructed in 1943 by the Royal Australian Air Force as RAAF Base Oakey. It was a training facility, for No. 6 Aircraft Depot and an overflow aircraft maintenance depot for RAAF Base Amberley. It stored surplus aircraft after the war.

In July 1968, the Australian Army Aviation Corps was formed, with the Department of Civil Aviation aerodrome at Oakey transferred to Army control in July 1969 for the Corps base.

The 6 Aviation Squadron (Reconnaissance) relocated from RAAF Amberley. Army Aviation units were raised, including the Headquarters Army Aviation Centre to control the airfield, and the Army Aviation Centre Base Squadron. By the end of 1973, the remainder of 1st Aviation Regiment had relocated, including the School of Army Aviation formed from the Training Squadron, and the 5 Base Workshop Battalion of the Royal Australian Electrical and Mechanical Engineers (RAEME) to provide fleet maintenance.

173 General Support Squadron and 171 Command and Liaison Squadron were formed at Oakey. During the period up to the early 1990s, aircraft types operating from the base included Bell OH-58 Kiowa, Bell UH-1 Iroquois, Sikorsky S-70A-9 Black Hawk, Pilatus Porter, and GAF Nomad.

In 1998, the Army Aviation Training Centre (AAvnTC) was formed at Oakey to command the School of Army Aviation (SAA), the Australian Defence Force Helicopter School, later renamed the Army Helicopter School (AHS) and the RAEME Aircraft Maintenance School, later renamed the Rotary Wing Aircraft Maintenance School (RAMS).

In 2001, the Army Helicopter School was moved from RAAF Fairbairn to Oakey. In 2004, the Iroquois helicopters from the 1st Aviation Regiment at Oakey were moved to the 5th Aviation Regiment in Townsville.

During 2005–06, the 1st Aviation Regiment moved its Headquarters, technical and logistic support squadrons and other elements to Robertson Barracks in Darwin. In 2006, a disbandment parade was held at Oakey for the last independent RAEME Workshop.

In 2007, Boeing Australia was given the Army Aviation Training and Training Support (AATTS) contract, and commenced providing pilot, aircrew and technician training for the Kiowa and Black Hawk helicopters and operational fleet maintenance. In 2010, a new expanded contract was awarded to include most facets of the military rotary wing flying training for Kiowa, Black Hawk and Chinook helicopters.

In 2009, the 173rd Aviation Squadron ceased operations at Oakey, transferring the unit's Beechcraft King Air 350s to the RAAF. In 2010, with the realignment of the Army Chain of Command, the base units of the Army Aviation Training Centre came under the control and responsibility of the Army Forces Command. In 2021, the Army Aviation Training Centre transferred from Forces Command to the newly established Army Aviation Command.

In 2021, the Australian 5th Aviation Regiment and Singaporean 127 Squadron formed Multinational Task Group Chinook, with each providing 3 CH-47F Chinook (a total of 6) in support of the 2021–2022 eastern Australia floods. Aircraft flew daily sorties in support of flood affected areas such as Lismore, Murwillumbah and Ballina by transporting food, water, personnel and construction equipment.

In April 2024 110 fire ant nests were detected at the base. This infestation raised concerns as it was one of the first times that the insects had been detected in the Murray-Darling Basin system.