Located at the top of Hope Street, the lookouts offer panoramic views of Cooktown.
In June and July 1770 Captain James Cook climbed Grassy Hill on several occasions to view the surrounding landscape. He ws able to navigate a safe passage for the "Endeavour" between the reefs as a result of his appraisal. Cook also named Grassy Hill as there was very little vegetation on the hill in 1770. Aboriginals burned back the vegetation to encourage fresh regrowth to attract wildlife for hunting and food.
The lighthouse was built in England and shipped to Cooktown in 1885. It was erected in 1886 and automated in 1927.