The institute was founded in 1999 with the mission of basing the scientific study of psychology on a Catholic understanding of the person, marriage, and the family, as well as being an international center for scholarship and professional training.

The IPS was founded in 1999 by a group of mental health professionals and academicians who perceived a need for a proper understanding of the relationship between psychology and its philosophical foundations.

The Institute's first and current campus is located in the Crystal City neighborhood of Arlington County, Virginia.

In 2005, the Southern Association of Colleges and Schools (SACS) granted accreditation to award masters and doctoral degrees.

Although the Legion plays a considerable role in the governance of the Institute, and provides the school with a chaplain and president, many students and faculty exercise their spirituality in ways that are consistent with other traditions.