The locality is located in the Albert River valley, bounded by the Albert River to the east and the Birnam Range to the west. Mundoolun Bridge marks the boundary between the Upper and Lower Albert River reaches.
In recent years housing lots have been developed as part of 'The Mundoolun Estate' situated east of Mundoolun Road.
The name Mundoolun is generally attributed to mundoolgunn (various spellings, including mundulgunn), a place name for death adder in the Bundjalung language (Yugambeh dialect). In 1936 a toponymic list appeared in The Courier-Mail newspaper referring to an indigenous word Mundoolunookum of the same meaning.
Mundoolun is part of the region occupied by the Wangerriburra people prior to European settlement. The Wangerriburra were commonly known as the Albert tribe and their territory consisted of the middle Albert River basin and upper Coomera River.
In 1827 Captain Patrick Logan, commandant of the Moreton Bay penal colony, made an expedition to Mount Barney. The expedition is believed to have passed through the Mundoolun area; Logan notes in his journal, "June 18th.—Continued my route; passed through a rich valley;".
In the 2011 census, Mundoolun recorded a population of 1,327 people, 50.6% female and 49.4% male.
The median age of the Mundoolun population was 34 years, 3 years below the national median of 37.
76.6% of people living in Mundoolun were born in Australia. The other top responses for country of birth were England 7.4%, New Zealand 4%, Netherlands 1.1%, Germany 0.7%, United States of America 0.6%.
93.4% of people spoke only English at home; the next most common languages were 1.1% Dutch, 0.9% German, 0.5% Finnish, 0.3% French, 0.3% Spanish.
Mabel Park State School is located on Borman Street, adjacent to the Mabel Park Junior Campus. The school was opened on 29 January 1974.