Dungeness is a vast expanse of shingle ridges, built up over the centuries by longshore drift. By the end of the medieval period it had grown into a promontory reaching out into the English Channel and had become a lethal and dangerous shipping hazard. Advances in marine technology during the 16th century had led to a large increase in both the number and size of ships in the English Channel. It is said that during one winter gale over 1000 sailors lost their lives and many valuable cargoes sank with them.

The first lighthouse, a simple wooden tower, probably 10.7 m (35 ft) high with an open coal fire on top, was licenced to private ownership by King James 1 (VI of Scotland) in August 1615. Time passed and the sea continued to retreat as the shingle banks grew.

A second brick lighthouse , approximately 33.5 m (110 ft) high was constructed around 1635. The structire lasted over 100 years, but it too became victim of the increasing shingle banks and, after complaints about poor light visibility at sea, a third Lighthouse was demanded by Trinity House and erected in 1790. Built by the noted agriculturalist, William Coke of Holkham, to designs by Samuel Wyatt, it was some 35.4 (116 ft) tall, similar in design to the Eddystone light, lit by 17 Argon lamps and fuelled first by oil, then petroleum. The light was magnified by silvered concave reflectors. Wyatt also designed the accommodation and service buildings which survive today.

Trinity House was empowered by an Act of Parliament in 1836 to buy out all lighthouse leases. In 1862 it pioneered commercial electricity by introducing it at Dungeness, although as electrical power supply was in its infancy, it eventually proved too costly to operate. The oil light was restored, but this time surrounded by much improved glass prisms. Towards the end of the 19th Century the shingle bank had increased to such an extent that an additional smaller low light became necessary and was placed near the waters edge. A siren-type foghorn, presented for trials by the United States Lighthouse Board, was housed in the same building.

In 1901 Trinity House commissioned Patrick & Co of London to build a new, taller fourth lighthouse, approximately 45.7 m (150 ft) high. This Lighthouse was ceremonially opened by HRH The Prince of Wales (later George V) in 1904. Its intermittent light, flashing every 10 seconds could be seen for approximately 30 km (18 miles). This, the fourth lighthouse (now known as the Old Lighthouse) was decommissioned in 1960 and became a tourist attraction and museum. The imposing building is almost 46 m (151 ft) high to the top of the weather vane, 11 m (36 ft) in diameter and constructed of engineering bricks with sandstone inner walls.

Over three million bricks were used to build the structure. Internally there are a series of mezzanine floors made of slate and supported by steel beams and massive rivets. Each floor is linked by circular concrete stairs which hug the walls and have decorative wrought iron banisters. There are cambered casement viewing windows on all floors. The outer gallery is closed during bad weather conditions. It is a Grade II Listed Building.

During the late 1950's work began on the Dungeness Power Station and it became apparent that, due to the height of the new building, the light would be obscured from the sea. Subsequently a fifth and automatic lighthouse was built closer to the waters edge where it operates from today.