On 4 May 2010, as part of the 2010/2011 State Budget, $83.7 million was allocated to upgrade Parkdale to a premium station, along with nineteen others.[9][10] However, in March 2011, this was scrapped by the Baillieu Government.[11]
On 29 July 2021, the Level Crossing Removal Project announced that the level crossing will be grade separated by 2025.[12] The project will involve elevating the line over the road, and will include rebuilding the station.[13] In late May 2023, construction commenced on the project.[14]
On 9 April 2023, a fire damaged the former ground level station building on Platform 1.[15]
On 15 July 2024, Warrigal Road and Parkers Road level crossing and equipment were eliminated, with the new Parkdale station having opened to passengers on 2 August 2024, since the original ground-level station closed on 21 October 2023.[16][17]
Due to the current lack of lifts at Parkdale, a shuttle taxi has been provided for passengers between Mentone and Mordialloc.[18]