The suburb was named after the Right Honourable George Rose (1744-1818), the Joint Secretary to the Treasury in England who played an important part in the establishment of the colony in Governor Arthur Phillip's time whilst also being a friend and mentor. George Rose is remembered by the two Sydney place names, Rose Bay and Rose Hill.
From 1938, seaplane flights to and from London began and terminated in Sydney Harbour on Rose Bay, making it Sydney's first international airport, and what is now Rose Bay Water Airport.