On March 3, 1847, the United States Congress authorized $12,000 for the construction of a lighthouse at Biloxi. The United States Department of the Treasury let a contract, dated October 15, 1847, to Murray & Hazlehurst to build an iron lighthouse for $6,347.00. The keeper's house was contracted separately. The Collector at Mobile, Alabama, purchased the site. The tower was completed and placed in operation in 1848. The tower was 45 feet (14 m) from the base to the lantern room and displayed nine lamps.

Throughout its history, the lighthouse has survived a score of hurricanes, including the great storms of 1947 and 1969. And, on August 29, 2005, it stood against the wind and tidal surge of Katrina. Inside the lighthouse, blue lines are painted on the wall to mark historic storm surges above 'mean sea level(msl). Hurricanes of 1855 and 1906 reached 14.0 feet above msl, a 1909 hurricane crested at 15.0 feet msl, and Hurricane Camille's record of 17.5 feet was broken by Hurricane Katrina, which crested at 21.5 feet msl.