The name Dundonald is derived from Dún Dónaill, 'Dónaill fort', in the town is a large mound which is all that remains of a Norman Motte and Baily, built shortly after the Norman invasion in the late 1100's.

Close to the mound is St. Elizabeth's Church, in the graveyard of which is the Cleland Mausoleum, the Rev John Cleland was a land agent of the Londonderry family of Mountstewart. At the time of the 1798 rebellion Cleland organized a spy ring reporting his findings to the government forces, he is said to have amassed a fortune during this time.

Dundonald is situated on the old Mail Coach route form Belfast to Newtownards, in the 1830's there was a bleach green in the town producing 5,000 pieces of finished linen a year, Lewis's Topographical Directory of Ireland, 1834 quotes a population of 1669.

The Irish railway system reached Dundonald in 1850, with the railway the town began to expand and develop as a commuter town, in 1950 shortly after the railways in Northern Ireland were nationalized the link to Newtownards on which Dundonald stood was closed.

If you would like to read about Dundonald Station which served the village of Dundonald faithfully for 100 years visit this site.

On the Old Newtownards road is a restored watermill at 10.67 Metes (35 ft) in diameter it is said to be the largest in Ireland, within the mill is a brasserie and gift shop.

Recreation in the town is well catered for at The Dundonald International Ice Bowl, opened in 1986 it had an Olympic size ice rink and a 20 lane ten pin bowling alley. this was up rated to thirty lanes in the 1990's. Later features added were a Lazar Quest a simulated combat arena and "Indianaland" a children's adventure playground.

Between the years of 1928-36 the Tourist Trophy (TT) motor car road race took place, the circuit encompassed the towns of Comber, Newtownards and Dundonald. The race was over thirty laps, on September 5th 1936 one of the drivers lost control of his car, and crashed into a group of spectators killing eight of them. This tragic event brought to an end an event which had frequently attracted crowds in excess of a quarter of a million.