Mount Erskine was named after John James Erskine, a member of George Town's committee of assessors around 1810; this committee would become the predecessor to the present-day Penang Island City Council.

The Chinese cemeteries in the area date back to the early 19th century. The southern cemetery, nearest to Gottlieb Road, is managed by the United Hokkien Cemeteries and serves as the final restinig place for Penang's Hokkien community.[3] Meanwhile, the northern cemetery is owned by the Kwangtung and Tengchow Association, a joint organisation that represents the Cantonese and the Teochews. The first tomb within this cemetery dates back to 1795.

The two large cemeteries in Mount Erskine did not deter urbanisation from creeping into the area. In the 1970s, residential estates surrounding the cemeteries were created, particularly around Pepper Estate to the north and Hong Seng Estate to the west. Apartments, such as Taman Evergreen, were also constructed later.

Among the more recent issues affecting this neighbourhood are the continuing development of the hilltop, which has been flattened for the construction of more residential properties, and the risk of landslides at Hong Seng Estate.

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