Wandandian has a long history of timber milling, although that is now only conducted on a fairly small scale, with only one hardwood mill operating and a timber yard specialising in dressing timber milled elsewhere.
The name Wandandian is a contraction of the name (Wandrawandian) for the local Aboriginal tribe. Local folklore suggests that its translation is “home of lost lovers” although it has equally been suggested that the name refers to the language of the local tribe.