The department was established in 1962 with the institution of a Tagore centenary Chair in Linguistics funded by the Government of India and the University Grants Commission (UGC) in the year 1977. After its completion, the Department was elevated to the status of a Centre of Advanced Study (CAS) in Linguistics in 1985. The department was sanctioned additional funds to the tune of Rs.13 Lakhs by the UGC under 'Assistance for Strengthening of Infrastructure in Humanities and Social Sciences' (ASIHSS) programme for a period of three years, i.e. from 2004 to 2007. The UGC has awarded the 4th phase of CAS status to the department in the year 2013 to 2018 with the grant of Rs.70 Lakhs (35 Lakhs recurring and 35 Lakhs non-recurring). Prof D. Vasanta has served as the coordinator and Sri Mohammad Ansari as Dy. coordinator.

Prof.B.Rama Krishna Reddy, 2023, Ex-faculty of the Department of Linguistics, Osmania University, received PadmaShri for his work done on Munda Languages.

Prof.Bh.Krishnamurti, served as Principal Art Collage and also served as V.C. at University of Hyderabad (1986-93). Prof. H.S. Ananthanarayana, Prof. C. Ramarao, Prof.B.Lakshmi Bai and Prof. Aditi Mukherjee, have served as Deans, Faculty of Arts, O.U., Hyderabad. Prof.B.Ramakrishna Reddy, served as Registrar, PS Telugu University, Hyderabad and Dravidian University, Kuppam.

The following are the major thrust areas of the Department:

The department also publishes a peer reviewed journal - Osmania Papers in Linguistics, with ISSN No.0970-0277, started in the year 1975. Till date 49 volumes have been published.

The M.A. programme in linguistics was started in 1962. P.G. Diploma in Applied Linguistics and the PhD programme was introduced in the year 1965. The MPhil programme was started in 1973. So far, 50 MPhil and 41 PhD degrees have been awarded.