It is one of the four "Phase-IV" All India Institutes of Medical Sciences (AIIMS) announced in July 2014.

The foundation stone was laid by J. P. Nadda (Union Minister of Health), M. Venkaiah Naidu (Vice President of India) and N. Chandrababu Naidu (Chief Minister of Andhra Pradesh).

In July 2014,[4] in the budget speech for 2014–15,[5] the Minister of Finance Arun Jaitley announced a budget of ₹500 crore (equivalent to ₹799 crore or US$92 million in 2023) for setting up four new AIIMS, in Andhra Pradesh, West Bengal, the Vidarbha region of Maharashtra and the Purvanchal region in Uttar Pradesh,[4] the so-called "Phase-IV" institutes.

[5] In October 2015 the AIIMS at Manglagiri was approved by the cabinet at a cost of ₹1,618 crore (equivalent to ₹24 billion or US$280 million in 2023).

[5] AIIMS Manglagiri commenced the 2018-19 academic session from a temporary campus at Siddhartha Medical College with 50 students.