Vaidyaratnam P. S. Varier, who completed his studies in Ayurveda in the traditional “Gurukula” system, established Arya Vaidya Samajam in 1902 and convened a conclave of major Ayurveda practitioners from all three provinces of present-day Kerala in 1903.

A branch of Arya Vaidya Sala started functioning at Kozhikode in 1916 and adjacent to it, Arya Vaidya Padasala was established in 1917. The dream of a visionary fructified on 14th January 1917.

In 1975, under the administration of Chief Minister Sri. C. Achutha Menon, the Kerala Ayurvedic Studies & Research Society (KASRS) was formed. On April 1, 1976, the Society officially took over the College and its assets, transforming the institution into a global hub for Ayurvedic research and international academic collaboration.

The governing body of KASRS comprises 10 members: Five from the State Government (with the Health Minister serving as Chairman) and five nominees from Arya Vaidya Sala. Its Executive Committee includes three government representatives, chaired by the Secretary of the Department of Health & Family Welfare, and two from Arya Vaidya Sala. The Executive Director and Chief Executive Officer manage the KASRS’s daily operations. The academic administration is headed by the Principal, and the Hospital Superintendent oversees the College Hospital's core administrative functions.