The Blue Diamond Stakes is Victoria’s major 2YO event run at set weights and is second only to the Golden Slipper Stakes as Australia’s premier contest for 2YO's.

The race is Victoria's richest race for 2 year olds and has Group 1 status.

First won by TOLERANCE (1971), other notable winners include MANIKATO (1978): REDOUTE’S CHOICE (1999): ALINGHI (2004): BOUNDING AWAY (1986) won the 2yo Triple Crown, Flight Stakes (1986), Coolmore Classic (1987) and ATC Oaks (1987) ; ZEDITAVE (1988) won the TJ Smith Stakes (1988) , Lightning Stakes, Futurity Stakes, William Reid Stakes (1989); and SEPOY (2011) won the Golden Slipper, Manikato Stakes and Coolmore Stud Stakes (2011).

Jockey Dwayne Dunn rode four consecutive winners from 2005 to 2008.