The Department of Islamic Studies at Osmania University was founded in the year 1965. Professor Hans Kruse, visiting Professor from Germany and Professor Anwar Moazzam played a key role in establishment of the Department.

The academic programmes in the department are devoted to research and teaching in the social science perspective about the religion of Islam, civilization of the Islamic world and contemporary developments in Muslim societies. Islam is studied here in its historical, sociological, political and anthropological contexts, removed from the biases of Orientalism and also removed from strictly theological perspectives.

Islamic Studies is a Discipline of international repute; In India, it is a distinctive and unique subject and is offered at Post Graduate level in a limited number of State and Central Universities. The presence of such a department at Osmania University is indeed commendable. The Department at Osmania University is one of the largest centres for teaching and research in Islamic Studies in South India. The department celebrated its Golden Jubilee year in 2015 and hosted lectures by eminent scholars, symposia and a national level seminar to mark the celebrations.

Through its M.A. level courses such as the Quran and Hadith, Muslim Jurisprudence, History of Muslim Civilization, Modern Trends and Socio-Political Thought, the department seeks to impart basic information with regard to Islam and Muslim society. Spiritual and speculative insight is gained through courses on Sufism and Muslim Philosophy. Contemporary Islam as a living phenomenon and Muslim societies as its expression is dealt in courses in area studies of North Africa, Turkey, Central Asia, South-East Asia, Egypt, Iran and the Arab-East. The courses on these areas focus on socio-economic and political developments.

Islamic Economics, as a subject, was introduced in 2015 as it is the need of the hour. Moreover, the adopted social science perspective and the subjects taught such as History of Muslim Civilisation, Muslim Socio-Political thought, Muslim Philosophy, Sufism, Islamic Economics etc., make this course unique and different from the Madrasa education.

The Department of Islamic Studies at Osmania University is attracting students from across the world.

The faculty at the department, besides teaching and administrative work, is actively engaged in research. The outstanding contributions of Prof. Anwar Moazzam, Prof. Suleman Siddiqi, and Prof. Shahid Ali Abbasi have played a pivotal role in elevating the department to global recognition. Through their exceptional teaching, strong administrative leadership, and groundbreaking research, they have significantly enhanced the department's reputation on the international stage. Their dedication and expertise have not only shaped the academic environment of the department but have also earned the department widespread recognition and respect in the global academic community.

The Nizam's Trust acknowledging the contribution of the department has instituted 'H.E.H, The Nizam's Gold Medal' to be given to the top-ranking student at Master's level. However, this practice is withheld. Last but not least is that the department maintains a Seminar library.