Diamond Creek is a suburb of Melbourne.

It is named after the Diamond Creek watercourse, a tributary of the Yarra River which flows through the area in a generally Southwards direction. The Town and creek's name relate to a story of a farmer whose prized bull (although some oral story refers to it as female), named 'Diamond'.

According to the story, the bull drowned in the creek, and for some reason lost in the story, the creek was named after this bull. The local Primary School's logo happens to be a picture of a bull's skull in a creek, giving tribute to the age old story.

The Diamond Creek shopping centre and railway station are situated on the banks of Diamond Creek, and the Hurstbridge railway line follows the course of Diamond Creek northwards from Eltham to its terminus at Hurstbridge.

Early white settlers in the Diamond Creek area are thought to have been timber getters and paling splitters. The township was established near the site of the Caledonia gold run, discovered in 1841.

The Diamond Reef was found in 1863, and the township of Diamond Creek was subsequently developed. In 1864 a post office, Methodist church, and a school were established. The township was surveyed between 1886 and 1887.

The name Nillumbik was the first title given to the town, which lasted until the turn of the century. After the gold rush, the area was used for orchards and small scale farming. The railway line from Eltham to Hurstbridge was opened in 1912, including a station at Diamond Creek.

In the postwar years, population increased dramatically in Diamond Creek and its neighbouring areas. The Diamond Valley Shire was created out of the northern part of the Shire of Heidelberg in 1964.
Further population growth occurred throughout the 1970s.

The early twentieth century saw a decline in the orchard industry, as orchards in Melbourne's eastern townships such as Doncaster and Nunawading, fell into favour due to better marketing.

Diamond Creek remained relatively untouched during the boom in recreational travel that followed the popularity of the motor car.