Ushwe Sing, minister of Chittagong Hill Tracts Affairs took the initiative to establish the university. Several social workers from Bandarban Hill District Council took this initiative forward. Bandarban Education and Development Foundation and Bandarban Hill District Council established this university by investing 75 percent and 25 percent respectively. On 1 September 2019, the foundation stone of the academic building of Bandarban University was laid in Suyalok Union under the implementation of Chittagong Hill Tracts Development Board. Ushwe Sing inaugurated the laying of the foundation stone of the academic building of the university at a cost of ৳5 crore on the university's own land under the implementation of the Chittagong Hill Tracts Development Board.