The biological grandmother of missing boy William Tyrrell has told how the recent inquest into the toddler's disappearance has helped dispel rumours that falsely implicated the family.

Since William's disappearance five years ago, wild theories and rumours about how he vanished quickly emerged, including allegations that blamed his own birth family.

The three-year-old had been in the care of his foster parents when he disappeared from their home in Kendall, New South Wales, in September 2014.

The child's birth grandmother said her family has been blamed 'in every way you can think of,' but revealed her son's recent emotional testimonial in court has vindicated them.

William Tyrrell's biological grandmother said the recent inquest into the boy's disappearance cleared the family's name after years of suspicion. William (pictured) vanished without a trace from the front garden of his foster carer's home

Since William's disappearance five years ago, wild theories and rumours about how he vanished quickly emerged, including allegations that blamed his own birth family

Both William's birth mother (pictured left) and his birth father (right) gave emotional testimonies during a recent inquest

'It'll be almost five years now since William went and we've been accused of so many things, it's ridiculous,' she told news.com.au.

'When [my son] said what he did in the court, he was telling the truth.

'His life has been ruined since William disappeared; it's not normal anymore and you hear terrible things about who is supposed to have done what.'

She hit out at critics saying it was 'too easy' to blame the family even as the case remains unsolved.

The grandmother maintained that William's biological father was always good to his son who still referred to him as 'daddy' even after he lost custody of the boy.

She pointed out her former daughter-in-law's passionate testimonial in which she was 'swearing and upfront.'

During the court hearing, William's birth dad also lashed out at the NSW Family and Community Services saying the organisation had 'f***ed up' and accused them of not keeping their son safe.

William's grandmother also revealed she has seen court documents which claimed the little boy had been 'difficult' to deal with and at times a 'handful'.

Coronial documents recently revealed William Tyrrell's birth mother was told her son 'had a black eye' from an accident just before her final contact visit with the toddler five years ago.

William Tyrrell's female foster carer gave tearful evidence about the moment the boy disappeared last month

The biological mother could still see a 'faint bruise' near William's eye when she saw him for the final time for two hours at the Chipmunk Centre at Macquarie Centre on August 21, 2014.

There is no suggestion whatsoever that the black eye was the result of anything but a typical accident of a toddler. Both William's foster and biological parents have been ruled out as suspects in his disappearance.

William was 'happy sitting on my lap and giving me a cuddle' and was 'more affectionate than usual' during the visit, the birth mother said in her statement.

The police statement was released last month by the coronial inquest investigating William’s September 14, 2014 disappearance.

Throughout the investigation numerous persons of interest have been identified. Some were charged with unrelated crimes as detectives dug into their pasts, others were cleared entirely.

The inquest for missing toddler Will Tyrell is set to go ahead this week as planned

In 2015 it emerged a ring of pedophiles had been active in the area and were being investigated. Years later, that theory has not conclusively been ruled out.

Public fascination with the mystery deepened in 2017 when a court ordered William's unusual family situation could be revealed.

William and his younger sister were in foster care when he disappeared.

The revelation, as with every development in the case, played out across national news bulletins and frontpages while sending armchair conspiracy theorists into overdrive on social media.

The second tranche of hearings, beginning August 5, will be watched closely by detectives as people they've identified as worthy of suspicion take the stand.

The coroner's legal powers mean witnesses could be forced to explain their movements and what they know about William's disappearance - unlike conventional police interviews.

Many of the people have never been named in the media, a police source told AAP earlier this year, adding only 'some names' came out publicly during the investigation.

While his foster parents have remained anonymous, their identities protected by suppression orders, William's biological mother Karlie Tyrrell has shared her grief.

'Don't hurt him. Just let him come home, please,' she told the Seven Network's Sunday Night program last year.

'I feel like whoever has him needs a bullet.'

Investigators hope someone on the witness list will reveal a scrap of information which leads them to her lost little boy and closes the grim chapter.