Designed by Richard Suter, the surveyor for Trinity House, construction of Pakefield Lighthouse began in 1831 and was completed the following year. This is somewhat unusual, as James Walker was the Engineer-in-chief to Trinity House at this time, and he designed most of the lighthouses established by the corporation between 1821 and the early 1860s.

Lit on May 1st 1832, the light source was originally two Argand lamps with reflectors, giving a constant white light with a range of 9 nautical miles, however this was changed to display a red light instead in 1835 to avoid confusion with the light emitted by nearby houses.

Changes in the positions of sandbanks in the area meant that the light's usefulness diminished, resulting in it being extinguished in 1864. The fact that it has survived as intact as it has since then is quite remarkable, although there have been some alterations.

Photos of the lighthouse from the John Frost collection, taken in 1947, show the lighthouse having lost it's original roof, although by 1960 it had it replaced by the ill-fitting one that exists today, which does not align with the shape of the lantern room glazing, nor does it have any kind of finial or vent at it's peak.

Some time after 1960 the lighthouse had its adjoining keepers' houses demolished - these had been significantly rebuilt since the lighthouse was decommissioned.

Due to the early date at which Pakefield lighthouse was extinguished, it is quite probably that no photo exists from when it was an active light.

Today, Pakefield Lighthouse is home to Pakefield Coastwatch, a volunteer lookout that operates 364 days of the year, based in the old lantern room.