KSDSU was established in 1961, with Mahamhopadhyay Dr. Umesh Misra, the eminent scholar, as the first Vice Chancellor. The then Education minister of unified Bihar satyendra narayan singh announced starting of the university. Maharaja Kameshwar Singh donated his ancestral Anand Bagh Palace to the government of Bihar as a university for the promotion of Sanskrit language. Currently, this palace is the head office of Kameshwar Singh Darbhanga Sanskrit University.
It has held one awareness campaign. Eminent Sanskrit scholar and poet Professor Ram Karan Sharma was the vice chancellor of Kameshwar Singh Darbhanga Sanskrit University, Darbhanga, from 1974 to 1980.