Psychology was first introduced as a subject in the undergraduate (BA) Programme in 1950-51 in the Department of Philosophy. Later, in 1962, the Department of Psychology was carved out from it with Prof. E.G. Prrameswaran as its first Head. M.A. was introduced in 1962 and the M.Phil and Ph.D Programmes were added in the 70s.

For two decades, the emphasis of the Department was on "Developmental Psychology". Its focus was shifted to "Counseling" and "Organizational Behaviour" as optional streams in 1986. A job oriented course, P.G. Diploma in Child Psychology was started in 1976 at OUCW, Koti and P.G. Diploma in Psychological Counseling was started at Nizam College.

The Department has awarded 70 Ph.D, 53 M.Phil degrees and has undertaken 32 research projects so far. A notable scheme - Educational and Vocational Guidance and Training (ECGT) Project' was started under the stewardship of late Prof. N. Yadagiri Reddy. Prof. Reddy has also served As Dean, Faculty of Social Sciences.

The Department has been sanctioned ASIHSS programme by the UGC from April 1st 2006 to April 2011. Department was also involved with research projects from BSNL, ISRO and European Union.

Prof. E.G. Parameswaran has also served as Principal of the College and Dean, Faculties of Social Sciences, Education and Business Management. Prof. K. Ramchandra Reddy served as Dean, Faculty of Social Sciences and OSD to the Vice Chancellor, O.U. and Prof. K. Ravichandra served as Director, Academic Staff College and Dean, Faculty of Social Sciences, O.U. and Prof. C. Beena served as Registrar, O.U. and Honorable Director, ICSSR, SRC and Deputy Director, Academic Staff College. Prof. Sulochana Reddy served as Chief, Employment, Information and Guidance Bureau, Principal, University College for Women, Koti, and OSD, Telangana University. Prof. Uma Rangan served as the Chief of Employment Information & Guidance Bureau, and as Vice-Principal of UCA&SS.

The present and former faculty of the Department has prepared the study material for B.A. (Psychology) and M.A (Psychology) courses for Indira Gandhi National Open University (IGNOU).

The Department has bagged a project - Global Fund to fight AIDS, Tuberculosis and Malaria (Round -7) and HIV/AIDS Counseling Programme (GFATM). It has also established "SAHAYAM", University Psychological Counseling Centre, O.U. to help the students.