Category three Monica crossed the coast just south of Lockhart River around mid afternoon on Wednesday with torrential rain and wind gusts of up to 220 kph, the weather bureau said.
But the town was spared the worst, and maximum wind gusts at the Lockhart River automatic weather station were only around 100 kph.
"We've had another miraculous survival from another one (cyclone)," Lockhart River Aboriginal Shire Council chief executive officer Peter Buckland told Ten News.
More than 700 Lockhart River residents were evacuated in March last year as category five Cyclone Ingrid tore through the area, but damage was minimal.
About 160 homes and businesses in the town were without electricity and repair crews were on standby in Cairns to assess the damage as soon as the cyclone damage passed.
In the meantime, the towns of Lockhart River, Coen, Aurukun and Weipa had emergency services on full alert and residents had been advised to take shelter in secure buildings and listen to radios for further advice.
"We are also monitoring events through Coen, Aurukun and Weipa," said Cairns Police Superintendent Mike Keating.
"We don't expect this to exit from the west side of the cape until maybe 2am tomorrow morning.
"For those of us who came to work at 5am, it's going to be a long day."