Nizam VII, H.E.H Mir Osman Ali Khan the last emperor of Hyderabad Government issued a "Farmaan" (known to be as Courtier Orders) on 26th April, 1917 for the establishment of Educational atmosphere with a phenomena to impart the education in all the faculties particularly in Urdu Medium, so as to generate the philosophy of Education for the betterment of the mankind. For the purpose number of books from all the faculties were translated by the eminent scholars and personalities from all over India.

The Department of Urdu was established on 28th August, 1918. In the same year the Dept. of Urdu came into existence with Intermediate course with the Headship of Prof. Waheeduddin Saleem. According to curriculum the same was further extend up to Degree level. In the year 1923 a Post-Graduation course was started in Urdu to fulfill further Higher Education. In Late 1940's, Research Program was started in the department. The Department started the M.Phil. Course from 1976 onwards. The Department has awarded nearly 200 Ph.D. and about 130 M.Phil. Degree so far.

The unique feature of the Department is its annual "Inter - University Urdu Festival" started in 1954 through which the literary and cultural talents of the students are encouraged. The Department use to Publish "QADEEM URDU" Annual Research Journal from 1964 to 1986, and Annual Literary Journal "MUJALLA-E-OSMANIA" from 1927 to 1991 and from 2004 onwards. The Department also has a library with thousands of books including rare books.