The Sambalpur University Act was passed by the Orissa Legislature on 10th December, 1966 to fulfill long cherished dream of the people of Western Orissa for establishment of a University. The University started functioning from 1st January, 1967 with Prof.Parsuram Mishra as the first Vice-Chancellor. The University was inaugurated on 4th January, 1967 by Hon’ble Chancellor A.N.Khosla. The University started functioning in 1967 in a rented private building at Dhanupali, Sambalpur and in Government building at Ainthapali, Sambalpur from 1968 - 72. In the year 1973 the University was shifted to the present campus named Jyoti Vihar at Burla.
The territorial jurisdiction of the University covers 10 districts of the state of Orissa namely Sambalpur, Sundargarh, Jharsuguda, Deogarh, Bargarh, Bolangir, Subarnapur, Nawapara, Kalahandi, Boudh and Athamallik Sub-Division of Angul District.