Leo Lambert, a local cave enthusiast knew of Lookout Mountain Cave and its rich history and had even explored the cave prior to it being sealed off.  He longed to reopen it to the public and devised a plan from which to do so.  In 1923 Mr. Lambert along with a group of investors decided to enact his plan. His idea was to drill an elevator shaft from another point on the mountain to access the cave from the surface above.  Work on this feat of engineering began in the fall of 1928.

On December 28, 1928, while excavating the elevator shaft a worker operating a jackhammer discovered a void in the rock and felt a gush of air.  This void was located at the 260 foot level, still 160 feet above the Lookout Mountain Cave.  Upon further inspection an opening, 18 inches high and five feet wide was discovered. 

Lambert, along with a small crew, entered this opening to explore the new found cave. 
While exploring they discovered a number of unusual and beautiful rock formations, flowing passages and several stream beds.  Pushing their way deeper and deeper into the cave, they finally reached its marvelous jewel, the waterfall.  Mr. Lambert and his exploration party were awestruck by its magnificence and beauty, and quickly returned to the surface to share their new found discovery with the rest of the crew.  The round trip journey took them about 17 hours.

On his next exploration into the cave, Lambert took several people including his wife Ruby to see the many wonders they had discovered.  While gazing at the waterfall, Lambert told his wife that he would name it in her honor,
“Ruby Falls"