The name Yarloop is said to have originated from the words “yard loop”; the rail loop into the timber yard there. However, the name is more likely Aboriginal in origin (most likely from the local Bindjareb Noongar people). Yalup Brook is situated only about 5km north of Yarloop and there is similarity in pronunciation of the word and the early spelling variations of the siding (Yailoup and Yarloup) support it being Aboriginal.
Yarloop is today home to citrus growers, dairy farmers and millers, as well as hosting WA’s biggest steam workshop showcasing a fine collection of steam trains and engines, and there is a timber workshop and heritage trail around the old mill town and conservation area. Facilities include primary school, local shops and various types of accommodation.