Finally implemented in late 1998, the idea of launching a full-fledged basketball club within the state-owned factory's legal framework had been considered since summer 1995, initially on the heels of yet another participation of Avala Ada employees in basketball competitions at the Workers' Sporting Games (Radničke sportske igre; state-funded excursionary social, leisure, and team building gatherings featuring semi-formal sporting competitions for employees within various industries).

Furthermore, having already secured a steady revenue and regular customer base allowed the company to financially support such a venture outside of its core business activity.

Playing the 1999–2000 season in the fourth-tier Serbian Second League, the Perišić-coached club set an ambitious goal of gaining promotion on its first try and succeeded.

Head coach Miša Perišić left the club after eventful two and a half years, taking the offer from the Serbian First League rivals KK Nova Pazova.

Before the start of the 2004–05 season, the most significant development in club's short history occurred—it was taken over by the Miško Ražnatović-owned BeoBasket sports agency.

During the 2005–06 campaign, playing its first top flight season, the club changed its name to KK Mega Basket on 19 December 2005.

[8][9] Later that summer, on August 11, 2018, the club played a pre-season preparation game under NCAA basketball rules against the most recent NCAA tournament Southern Regional semifinalist University of Kentucky men's basketball team at the Imperial Arena on Paradise Island in the Bahamas, losing heavily 100–64.

[10] Some ten days later, on August 23, 2018, Mega played the University of Michigan men's basketball team, recent NCAA tournament runner-up, this time under FIBA rules, in Sant Julià de Vilatorta, Spain and winning 81–73.

[11] As an organization focused primarily on showcasing its roster and providing a springboard platform for player transfers to bigger clubs in Europe and the NBA, in summer 2019, Mega continued the pre-season practice of travelling to the Bahamas to face off against top U.S. collegiate teams in preparatory games.

The club has had several home arenas through the years in four cities: Note: Flags indicate national team eligibility at FIBA-sanctioned events.