Captain Robert Christopher Packe arrived in the Falklands in 1851 with the intention of starting a new business in the islands. On arrival he immediately acquired leases on Fitzroy and Port Louis on East Falkland.  He is credited with introducing large-scale sheep farming to the economy of the islands, bringing sheep and a trained shepherd from England. He died in November 1893 in Upper Norwood, England, leaving Fitzroy (and Port Louis) to his nephew Vere Packe. A Manager’s House was built in 1910.

During the World War I, in 1914 the German fleet attempted to execute a surprise attack on the islands intending to destroy the powerful wireless station among other strategic targets based in Stanley.  On 8th December smoke from the German squadron was sighted from Sapper Hill lookout and the British squadron which had arrived only the day before prepared to sail. Vere Packe in Stanley telephoned Mrs Felton, the Manager’s wife at Fitzroy to see if she could see any German ships. She immediately sent her maid and house boy on horseback to Fitzroy ridge where there was a good view. They soon raced back to report that six German vessels were in Port Pleasant and steaming east. Mrs Felton was on her telephone all day and kept the War Office in Stanley, the Governor and FI Volunteer Corps up to date with the German squadron’s movements.

In 1920 the Falkland Islands Company bought Fitzroy and its 30,000 sheep. In 1921 the cookhouse burned down, the new one was not completed until 1931 (£1,110). Rat Castle stood in for a bunkhouse. New houses and a shearing shed (shearing shed supplied by William Bain & Co. Ltd and built in 1928 at a cost of £5,048) were constructed under the supervision of their manager F. G. Langdon. The iron sheep dip was built in 1929 and the bridge across the river was built 1934/35.

The worst loss of life for the British Task Force during the Falklands War happened on 8th June 1982 at Bluff Cove, Fitzroy, when two Argentine Mirage aeroplanes attacked RFA Sir Galahad and RFA Sir Tristram as they attempted to reinforce the British soldiers encamped at Fitzroy. Welsh Guard Infantry were mainly on Sir Galahad. A bomb exploded in the ship’s ammunition hold which resulted in a massive fire. Fifty-four men died and forty-six were injured, many suffering serious burn wounds. Sea King helicopter pilots, one being Prince Andrew, were heroic, rescuing many by flying through thick smoke and exploding ammunition to winch up the injured and using their rotor blades as they flew low to the water to make a wash to drive back life rafts that were drifting back to the burning ship.
Fitzroy was sold to Falkland Landholdings Corporation, a statutory body of the Falkland Government in the early 1990’s.