The township of Yinnar is in the valley of the Morwell River, about 11 km south of Morwell in the Latrobe Valley, Gippsland.
The district was part of the Scrubby Forest pastoral run, occupied from 1850. Land was taken up by selectors in the early 1870s. In 1885, a branch railway line was opened from Morwell south to Mirboo North. Yinnar township came into existence around the railway station at the seven mile peg. The name Yinnar was taken from the parish name and is an Aboriginal word thought to mean woman.