Bahawalpur has always been a seat of higher learning. Uch Sharif (a nearby ancient town) had one of the largest universities in the world where scholars from all over the world used to come for studies. As a continuation of this tradition a religious university (Jamia Abbasia) was established at Bahawalpur in 1925, following the academic pursuits of Jamia Al-Azhar, Egypt. The renowned scholars spread the beacon of Islam by teaching Tafseer of Quran, Hadith, Fiqh, and History along with other contemporary subjects.

In view of the changing scenario, Jamia Abbasia was declared as a general University in 1975, and renamed as The Islamia University of Bahawalpur. Initially, it started functioning at Abbasia and Khawaja Fareed Campuses with ten departments. In order to construct a modern and self-contained campus, 1250 acres of land was allotted to the University on Hasilpur Road about eight kilometers away from the city centre.