Skye is a rural/residential area 38 km south-east of central Melbourne, situated about midway between Seaford and Cranbourne. It was named after the Isle of Skye, Inner Hebrides, Britain, as several farm settlers during the 1850s came from there.

In 1861 a village was surveyed near the intersection of Ballarto and McCormick Roads, but little came of it apart from occasional land sales. A church building for Anglican, Presbyterian and Wesleyan services was opened in the 1860s and a school was opened in 1873. The area was one of quiet farm life until a murder in 1894 obliged a change of name from Skye to Lyndhurst (later Lyndhurst South). It took 70 years before the name was returned to Skye primary school.

During the 1980s a residential area was created north of the old village subdivision, and Skye became a mixture of urban housing in the west and small farms in the east.

Skye has a recreation reserve, tennis courts, a golf course and a school (364 pupils, 1998 and 533 pupils, 2014). There is shopping at Carrum Downs and Langwarrin and at the regional centres of Frankston and Dandenong.

Skye's census populations have been:

census date population
1921   93
1954  147
1966  231
2001 3175
2006 6898
2011 7484