The Lilydale Cemetery has high local significance as an early 1861 rural cemetery, which contains the graves of many pioneer families and well-known district people, such as Dame Nellie Melba, her father David Mitchell, and the artists Ernest Buckmaster and William Blamire Young.

Lilydale Cemetery is a large cemetery located on the edge of the township, on a high site with views to the Dividing Range, the Yarra Valley and the Dandenongs. The cemetery is rectangular in shape, and has been developed using a grid pattern. There are distinct denominational sections. Paths throughout the cemetery vary, with gravel and concrete predominating . The major tree planting use common cemetery species - Italian cypress, pines, other conifers, Bunya - plus more recent wattles. These plantings appear fairly informal in layout. A new brick and iron palisade fence surrounds the cemetery.

A wide variety of monument types are represented, including a number of large and elaborate headstones. Of particular note is the David Mitchell memorial, with Melba's grave adjoining.

Generally the cemetery is well maintained throughout. A number of gaps suggest that some memorials may have been lost through deterioration. A few monuments need more active maintenance as do some paths. There appears to be little new planting in the central and older part of the cemetery, however substantial new planting has been undertaken particularly around the perimeter and newer lawn areas.

Physical Conditions: Good

Integrity: Minor Modifications