Underwood is named after early settler William Underwood who was a land holder, in the Eight Mile Plains district from 1865. He established the Commercial Hotel on his land to the north of the Beenleigh Road intersection. It operated from the early 1870s through to 1895 when it burnt down. Underwood had moved on in the 1880s to manage the Mount Gravatt hotel. During the late 1890s, Underwood's sons William junior and Walter were horse dealers in Eight Mile Plains, while Arthur was a storekeeper and blacksmith in the Mount Gravatt area. Walter Underwood lived on the corner of Underwood and Logan Roads through to the late 1930s and was involved in farming and timber getting. The suburb was gazetted in 1975 and at that time straddled the boundaries of Brisbane City and Albert Shire. Today, Underwood is bounded by Millers Road, Underwood Road, the South-East Freeway, Logan Road and roughly Compton Road. It includes major industrial and shopping precincts, the mail exchange, the Australian Football Club, the Logan Aquatic Centre, as well as residential estates.