The township of approximately 500 (2016 Census), is located in the Gulf of Carpentaria on the north-eastern coast of Groote Eylandt.
Umbakumba was established in 1938 as a base for trepanning and service point for Qantas flying boats, and then for the RAAF during WWII. After the war, the Church Missionary Society ran Umbakumba until 1966, when it was taken over by the Australian Government. In 2008, Umbakumba became part of the East Arnhem Shire Council.