The chapter traces the development and legacy of critical theory in Australia. It emphasizes how an intersection of factors produced theoretical innovations and how social, political, and cultural changes in Australia have inflected the themes of critique. The arrival of members of the Budapest School transformed the reception of the Frankfurt School and like Johann P Arnason - another influential émigré social theorist - contributed to Australian critical theory’s distinctive concerns and perspective. One distinguishing feature of Australian critical theory is Cornelius Castoriadis’ parallel project’s influence upon it, evident in works on creativity, utopias, romanticism, and capitalism. Owing to their consolidation of these tendencies, Australian critical theory journals pioneered two approaches that became more broadly influential in social theory: the perspective of multiple modernities and the theory of social and political imaginaries. Australian discussions have likewise involved novel engagements with later critical theory. A landmark study of economic rationalism applied several of Habermas’ key theses and the implications of Habermas’ theory of democracy have been expounded. Similarly, Honneth’s theory of the struggle for recognition is an informant of theoretical analyses of hope, work, contestation and intersubjectivity. The conclusion reflects on the potential global significance of Australian critical theory.