The Academy replaced the Hebrew Language Committee (Vaʻad ha-lashon ha-ʻIvrit) established in 1890 by Eliezer Ben-Yehuda, who was its first president.

[4] The Academy's mission, as defined in its constitution, is "to direct the development of Hebrew in light of its nature" (לכוון את דרכי התפתחותה של הלשון העברית לפי טבעה).

[5] The Academy sets standards for modern Hebrew grammar, orthography, transliteration, and punctuation based on the historical development of the language.

In addition, the Academy employs 8 academic advisors, among them respected scholars of language, linguistics, Judaic studies, and Bible.

The Academy's decisions are binding on all governmental agencies, including the Israeli Public Broadcasting Corporation.