From the start the firm was involved in publishing in a modest way, its output consisting mainly of school books.

In 1888, the company was taken over by William Martin Nygaard and Thorstein Lambrechts (1856–1933), who kept the name while expanding its operations.

Important Norwegian authors first published by Aschehoug have included Nobel Prize laureate, Sigrid Undset, as well as Fridtjof Nansen, Johan Falkberget, Hans E. Kinck, Aksel Sandemose, Arne Garborg — all of them writers whose works are today regarded as classics of Norwegian literature.

Its publishing program is divided into three main categories - works of fiction, including books for children and younger readers; works of reference, popular science and handbooks on various hobbies, and serving as the leading Norwegian publishing house for textbooks, for every level of instruction.

The company's CEO William Nygaard was shot and seriously wounded in 1993, presumably as a result of the fatwa issued against Rushdie and his publishers.