Whilst living in Malaysia in the 60s, Paul Wright, the founder and original owner of the sanctuary, was fascinated by the diversity of the tropical butterflies there, albeit that they were never seen often or for long enough.

Knowing that a glimpse of these creatures lightens the hearts of all, he had a dream to create an environment where there was opportunity to experience these creatures in all their gracefulness and glory.

On visiting Kuranda in 1968, Paul became acquainted with the locals, people and butterflies alike, and realised that the diversity and beauty of north Queensland tropical butterflies was equal to all those he had seen in Malaysia.

Situated just 27 Km west of Cairns, Kuranda offered the advantages of being readily accessible to people, as well as easy living for the butterflies, it already being their natural habitat.

The sanctuary was designed with the concept of it being a self sustaining operation, hence allowance was made for all food plants to feed the caterpillars to be grown on the premises.

The aviary, and the garden within it, took three years to design, build and landscape. It was officially opened by Lady Flo Bjelke-Petersen in 1987, and gained a place in the Guinness Book of Records as the largest butterfly aviary in the world. It has been visited by over a million people since, and to date it still holds the record as the largest aviary in the southern hemisphere.

In 2004, Charles and Pip Woodward, the owners of Tropic Wings Coach Tours and Rainforestation Nature Park, joined Paul and Sue Wright in an equal partnership in the Australian Butterfly Sanctuary. The following year, the Woodward family launched a new group name for the several companies they owned - The CaPTA Group, standing for Cairns and Port Trips & Attractions.

On the 1st July 2007, the Woodwards purchased the remaining share of the Sanctuary from the Wrights, with Paul remaining a Consultant for the business; his extensive knowledge and experience a valuable asset to the continuing success of the attraction.