In 1836 Steinschneider went to Vienna to continue his studies, and, on the advice of his friend Leopold Dukes, he devoted himself especially to Oriental and Neo-Hebrew literatures, and most particularly to bibliography, which would become his principal focus.
As a Jew on the continent, Steinschneider was prevented from entering the Oriental Academy; and for the same reason he was unable even to obtain permission to make extracts from the Hebrew books and manuscripts in the Imperial Library, Vienna.
In spite of these drawbacks he continued his studies in Arabic, Syriac, and Hebrew with Professor Kaerle at the Catholic Theological Faculty of the University.
At this time he began the translation of the Qur'an into Hebrew and collaborated with Franz Delitzsch in editing Aaron ben Elijah's 'Etz Chayyim (Leipzig, 1841); but the rules of the Austrian censorship did not permit the publication of his name as coeditor.
Having at length secured the necessary passport, Steinschneider in 1839 proceeded to Berlin, where he attended the university lectures of Franz Bopp on comparative philology and the history of Oriental literatures.
From 1860 to 1869 he served as representative of the Jewish community at the administration, before the tribunals of the city, of the oath More Judaico, never omitting the opportunity to protest against this remnant of medieval prejudice.
He was the first to give a systematic survey of Jewish literature down to the end of the eighteenth century, and to publish catalogues of the Hebrew books and manuscripts which are found in the public libraries of Europe.
This and the catalogues of the libraries of Leiden, Munich, Hamburg, and Berlin, as well as the twenty-one volumes of his Hebräische Bibliographie, form a mine of information of Jewish history and literature.
One of his most important original works is Die Hebräischen Übersetzungen des Mittelalters und die Juden als Dolmetscher: Ein Beitrag zur Literaturgeschichte des Mittelalters; meistenteils nach Handschriftlichen Quellen, (The Hebrew Translations of the Middle Ages and the Jews as Interpreters: a contribution to the literary history of the Middle Ages, mostly according to handwritten sources) published in Berlin, 1893, planned in 1849.
He determined to supplement the monographs of Huet, Jourdain, Wüstenfeld, and Johann Georg Wenrich on the history of translations by one having the Neo-Hebrew literature as its subject.