On 1 December 1976 then government announced the establishment of the Islamic University to promote a coordinated approach to Islamic education and general education in the country. Islamic University, Kushtia was founded on 22 November 1979 at Shantidanga-Dulalpur (Kushtia-Jhenidah) by then President of Bangladesh General Ziaur Rahman, based on the recommendation of ‘Islamic University Planning Committee’ on 7 January 1977 headed by M. A. Bari including seven other members. The Islamic University Act was passed in the National Assembly of Bangladesh on 27 December 1980. The objective of establishing Islamic University is "to provide for instruction in theology and other fields of Islamic Studies and comparative jurisprudence and such other branches of learning at Graduate and Postgraduate level as the University may think fit and make provision for research including Post-Doctorate research and training for the advancement and dissemination of knowledge" On 1 January 1981 the government of Bangladesh appointed A. N. M Momtaz Uddin Choudhury as the first vice-chancellor and the university became operational that year. As construction of several important buildings began, a presidential decree was issued on 15 May 1982 to shift the university from Shantidanga-Dulalpur (Kushtia-Jhenaidah) to Boardbazar, Gazipur on an area of 50 acres. The construction of an academic building, two residential halls and other necessary infrastructures were completed. Initially two faculties (Faculty of Theology and Islamic Studies, Faculty of Humanities and Social Sciences) with four departments (Al-Quran and Islamic Studies, Dawah and Islamic Studies, Accounting and Information System, Management) were established and 300 students were enrolled in the session of 1985–86. In 1987, two more departments (Economics, Law) were established. On 28 December 1988, while the infrastructure development and academic activities were in full swing, the university was again shifted to Shantidanga-Dulalpur (Kushtia-Jhenidah). In 1991 five more departments — Bengali, English, Arabic, Islamic History, and Public Administration — were established. In 1992, one more departments (Al Hadith and Islamic Studies) were established. In 1995 three other departments — of Electrical and Electronic Engineering, Applied Chemistry and Chemical Engineering, and Computer Science and Engineering— were established. In 1998 three other departments — Information and Communication Technology, Biotechnology and Genetic Engineering, and Applied Nutrition and Food Technology — were established. In 2007 two more departments Mathematics, and Al-Fiqh and Legal Studies— were established. In 2009 two more departments Finance and Banking, and Statistics— were established. In 2015 three more departments — Folklore Studies, Political Science, and Marketing— were opened. In 2017, 8 more departments— Law and Land Management, Development Studies, Social Welfare, Biomedical Engineering, Pharmacy, Environmental Science & Geography, Human Resources Management, Tourism and Hospitality Management — were established. In 2019 the department of Fine Arts was added to the Faculty of Arts. In 2021 the department of Mass Communication & Journalism was added to the Faculty of Social Science. In 2022 the department of Physical Education and Sports Science was added to the Faculty of Science. Currently there are 36 departments under 8 faculties i. e. Faculty of Theology & Islamic Studies, Faculty of Arts, Faculty of Social Sciences, Faculty of Law, Faculty of Business Administration, Faculty of Sciences, Faculty of Engineering & Technology, and Faculty of Biological Sciences. It may be mentioned that the department of Information and Communication Technology of Islamic University in Kushtia was opened in 1998 as the pioneer department in that name in Bangladesh. In addition, "ICE Innovation Lab", the first ever Internet of Things (IoT) Lab in Bangladesh, was inaugurated at the department of Information and Communication Engineering (ICE) of Islamic University (IU) in Kushtia on 21 September 2016. Three former students of the department contributed to the procurement of all the Internet of Things (IoT)-related equipment including Sensor, Raspberry pi, Arduino, Shield etc. for the Innovation Lab. On 23 June 2009, an Act of the Parliament assigned the President as chancellor, replacing the Prime Minister. On 21 August 2016, Harun-Ur-Rashid Askari of English department of Kushtia Islamic University was appointed its 12th Vice Chancellor. The 'Bangabandhu Chair' was established at IU under Bangla department on 20 July 2017 to carry out extensive research on the life, political activities and ideology of the Bangabandhu Sheikh Mujibur Rahman, the Father of the Nation. Shamsuzzaman Khan, former director general of Bangla Academy, was appointed as 'Bangabandhu Chair' Professor at Islamic University (IU) in Kushtia on 1 October 2018.