Coconut Grove is named for the grove of coconuts on the coastal fringe of the area. Development of Coconut Grove dates back to the pre-war years when it was mainly used for farming, but the suburb primarily grew from the 1960s.
Coconut Grove is a residential and light industrial suburb. Coconut Grove is bounded by Progress Drive in the north, Bagot Road in the east, Totem Road in the south and the Timor Sea foreshore in the west. Most streets in Coconut Grove are named after local Darwin residents, interstate visitors and crew who lost their lives during the shipwreck of the SS Gothenburg off the Queensland coast in 1875.