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Potti Sreeramulu Telugu University is one of the few language universities in the country. It was established as "Telugu University" on 2nd December 1985 through an Act of Legislation (Act No. 27 of 1985) with head quarters at Hyderabad and campuses at Sri Sailam and Rajahmundry. Later in the year 1989 the Siddhendra Kalakshetram at Kuchipudi merged with the University. The School of Folk and Tribal Lore was established at Warangal during the year 1994.

This University was founded with the broad objectives of serving the cause of the Telugu people, both within the State and outside. For this purpose, the state government has merged the Sahitya, Sangeetha, Nataka, Nritya and Lalitha Kala Academies, International Telugu Institute and Telugu Bhasha Samithi into the University. Thus, the University was established to function as a central organization for teaching and research in Language and Literature, History and Culture, Fine Arts and Performing Arts, religion and philosophy of the Telugu speaking people. It strives to inculcate a sense of identity in them as citizens of India and as responsible representatives of Andhra Pradesh. This University was renamed as Potti Sreeramulu Telugu University in the year 1998. The University Grants Commission has recognized the University as fit to receive financial grants since 2nd May1990.