Built in 1871 in the most populated port in between San Francisco and Puget Sound, the Yaquina Bay Light was completed right after the founding of the city of Newport in the state of Oregon. The lighthouse was constructed by Ben Simpson and was only used for three years, as it was decommissioned upon the completion of the Yaquina Head Light.

After serving as a lighthouse, the Yaquina Bay Light served as a living quarters for the US Army Corps of Engineers. Afterwards, it was used by the Coast Guard as a lookout and living quarters. In 1934, the property was acquired by the Oregon State Highway Division. When it was scheduled for demolition in 1951, it was saved by the Lincoln County Historical Society and turned into a county museum.

The Yaquina Bay Light was re-lit in 1996 and is currently used by the US Coast Guard as an aid.