Prospect Peak was constructed in 1912, a California Region 5 Plan 4A. Lookout materials were hauled from Red Bluff to Blue Lake for transport via mule train to the top of the peak.

The cabin was lifted from the peak in 1981 by helicopter and transported to Manzanita Lake, where it was to be restored as an interpretive display. The restoration did not take place and some time in the early 2000's, the lookout was transferred from the Lassen Volcanic Park to the San Bernardino National Forest. The cabin was dismantled and trucked to storage site on the Forest, where it was to be reassembled atop the existing tower at Cajon Mountain. The Forest chose to dismantle the tower and project did not go forward.

Prospect Peak is likely the oldest existing lookout cabin in California and along with Buck Rock are the only 2 surviving 4A designs. The current status and whereabouts of Prospect Peak Lookout Cabin are unknown.