The desire to develop a university in Sabah implemented on 24 November 1994, when Parliament approved the establishment of Universiti Malaysia Sabah. Initially only three schools namely the School of Science and Technology, School of Business and Technology and School of Social Sciences was established. In addition, there is also a liberal education center called Centre for the Promotion of Knowledge and Language.

When the first academic session begins in mid-1995, there were 205 students who registered. Number of teaching staff of 24 lecturers and administration is managed by 13 management staff, assisted by 26 support staff.

Up to now, besides the increasing number of schools, namely the School of Engineering and Information Technology, School of Education and Social Development, School of Psychology and Social Work, School of Food Science and Nutrition, School of International Tropical Forestry, School of Arts and School of Medicine as well as the existence of the latest three research institutes of the Research Institute for Tropical Biology and Conservation, Borneo Marine Research Institute and the Biotechnology Research Institute.

UMS has also successfully completed a number of building complex in the area of 999 acres of land located in the Gulf Sepanggar. UMS campus completed then was officiated by Dato 'Seri Dr. Mahathir Mohamad, Prime Minister of Malaysia on 19 September 2000.

Opening a branch campus in Labuan UMS implemented on January 2, 1999 has recorded another milestone of progress for UMS. Cited as the Labuan International Campus (KAL), it houses two schools, the School of Science and School of Informatics International Business and Finance.

At present, students of UMS totaled 12350 people, while the number of academic staff of about 570 people.