The planetary boundary layer height (PBLH) is one of the key factors in influencing the dispersion of the air pollutants in the troposphere and hence the air pollutant concentration on ground level. For this reason, accurate air pollutant concentration depends on the performance of PBLH prediction. Recently, ceilometer, a lidar instrument to measure cloud base height, has been used by atmospheric scientists and air pollution control authorities to determine the mixing level height (MLH) in improving forecasting and understanding the evolution of aerosol layers above ground at a site. In this study, ceilometer data at an urban (Lidcombe) and a rural (Merriwa) location in the New South Wales, Australia was used to validate the PBLH prediction from two air quality models (CCAM-CTM and WRF-CMAQ) as well as to understand the aerosol transport from sources to receptor point at Merriwa for the three case studies where high PM10 concentration was detected in each of the three days. The results show that the PBLH prediction by the two air quality models corresponds reasonably well with observed ceilometer data and the cause and source of high PM10 concentration at Merriwa can be found by using ceilometer MLH data to corroborate with back trajectory analysis of transport of aerosols to the receptor point at Merriwa. Of the three case studies, one had aerosol source from north and north west of Merriwa in remote NSW where windblown dust is the main source, and the other two had sources from south and south east of Merriwa where anthropogenic sources dominate,