Currently, there isn't a lot of concrete information about the history of the Koolie. It is broadly believed that the Koolie’s foundations are from the smooth coated Collie.

Although sometimes referred to as the German Koolie, due to the fact that they were good workers (koolies) for German settlers living in Australia, they are thought to be one of Australia's oldest breeds. As records were never kept regarding parentage, the breed is not yet officially recognised by the Australian National Kennel Council.

It is said that the best trait of this breed is its personality. They are very dedicated and willing to please their owners, also extremely intelligent and fun-loving. Koolies make good watchdogs as they are not aggressive but will bark to alert their owners. Breeders say they are good with children. They also do very well in obedience and agility trials since their will to please is endless.

The Koolie colours at this time are solid black/grey, red, blue or white, red merle or blue merle, and can be mixed. Their coats range from as long as a Border Collie to smooth coat. Their eyes are blue, brown or black and you can get mixed, and they range in size from a small Kelpie size to as tall as a Border Collie.

Being primarily a working dog, Koolies are suited to country life. They will run all day if required. Although not lapdogs, they love to be indoors and make good companions as long as they have access to the outdoors, a large yard and an active owner willing to work the dog, either through farm work or obedience, agility, tracking and endurance work.

They are not generally dog-aggressive and are good with other pets if raised with them from puppyhood. They are usually good with children, but are recommended for children over 6 years because they are said to be boisterous.

This energetic working dog needs plenty of vigorous exercise to stay in shape, or better yet, some real work to do. The coat is easy to groom and needs little attention. Brush occasionally with a firm bristle brush and bathe only when necessary. Koolies are average shedders.

Inherited deafness can be a problem in dogs with a large amount of white on their bodies.