It was the borough engineer, Harry W Smith, who had the idea of setting out the gardens in Japanese style. Japanese style statues in the park were purchased from Killerby Hall and exotic shrubs and flowers were imported from the home of a local retired banker who was living in the French Riviera.
In 1924 the park was extended south-westwards along Peasholm Glen following the purchase of more land from the Duchy of Lancaster 1921. Parts of the east side of the Glen were in private ownership and these were donated to the Corporation.
Peasholm Park was used for aquatic displays, musical performances and evening firework displays. It became immensely popular in the immediate pre- and post-Second World War era.
After a period of decay a programme of restoration was initiated. Improvement works have been made possible by the granting of funding of over £300,000 from the Heritage Lottery Fund and additional funds from Scarborough Borough Council. Following the draining of the lake, work was undertaken to remove the large amount of silt in the lake bottom,with the aim of removing enough silt to free sufficient water capacity for the lake to operate successfully.