It can trace its origin to the Literary Society of Bombay which first met in Mumbai on 26 November 1804, and was founded by Sir James Mackintosh.

Thereafter, on several occasions, some more aims and objectives were added such as encouraging the research studies in the language, philosophy, arts and natural and social sciences in relation to India and Asia, publishing journals, maintaining a library and museum, establishing institutes and centres which fulfill aims and objects of the Society.

[3] It is said that, in the 1930s, the Italian government under Benito Mussolini offered the society one million pounds, calling the book a national treasure.

The adopt-a-book scheme was recently introduced by the Society which allows patrons to fund the upkeep of rare books.

Established in 1946, the medal is awarded for valuable research work in Vedic Studies or in Classical Sanskrit with special reference to Dharma Shastra and Poetics.

Though Sir James Mackintosh mooted the proposal for a grand edifice, it was not completed until the year 1 after many fits and starts, when the Government of Bombay agreed to make up for the shortfall in funds in return for office-space.

Apart from the Asiatic Society of Mumbai, the building also houses State Central Library and a museum, Maharashtra Women's Association, and the Additional Stamp Controller Office.

The edifice is in the prime Fort area of South Mumbai overlooking the Horniman Circle Gardens and the Reserve Bank of India.