It was established as "Telugu University" on 2 December 1985 through an Act of Legislation (Act No. 27 of 1985) by the State Legislature of the-then united Andhra Pradesh with headquarters at Hyderabad and campuses at Sri Sailam and Rajahmundry. Dr. N. T. Rama Rao was the founder and first Chancellor of this esteemed university. Later in the year 1989 the Sri Siddhendra Yogi Kala Pitham at Kuchipudi merged with the University. The School of Folk and Tribal Lore was established at Warangal during the year 1994. This University was founded with the broad objectives of serving the cause of the Telugu people, both within the State and outside. For this purpose, the state government has merged the Sahitya, Sangeeta, Nataka, Nritya and Lalita Kala Academies, International Telugu Institute and Telugu Bhasha Samiti into the University. Thus, the University was established to function as a central organization for teaching and research in Language and Literature, History and Culture, Fine Arts and Performing Arts, religion and philosophy of the Telugu speaking people. It strives to inculcate a sense of identity in them as citizens of India and as responsible representatives of Andhra Pradesh and Telangana. This University was renamed as "Potti Sreeramulu Telugu University" in the year 1998. The University Grants Commission has recognized the University as fit to receive financial grants since 2 May 1990.