Several iconic, sclerophyllous, endemic lineages among Gondwanan families (e.g. Proteaceae, Myrtaceae, Goodeniaceae, and Restionaceae) are characteristic features of the Australian flora. Many of these lineages diversified in the Eocene–Miocene, replacing rainforest Gondwanan lineages as the continent progressively cooled and became more seasonal and arid. Paleorecords have indicated that these temperate Australian sclerophyllous plant groups subsequently declined in dominance and retreated towards the mesic periphery of the continent as the arid zone expanded from the Pliocene to the present. I will present research findings on the macroevolution, diversification dynamics, biogeography, and evolution of the Australian temperate flora as well as on specific case study groups. This includes findings on the Eocene–Oligocene boundary extinction event as a major driver for biotic diversification across Australia. Selected examples include the biogeography of Proteaceae, Myrtaceae and Rhamnaceae. Future research prospects in the context of the wider Australian biota (plants and animals) will be discussed.