It was founded in 1920 by Lala Raghubir Singh, a prominent Delhi-based businessman and philanthropist, who desired an institution that combined the "best of ancient Indian tradition with the needs of the times.

"[1] It was the first private and coeducational school established in Delhi after the capital of the British Raj shifted to the city.

[10][11][12][13][14] The primary branch attended by students through Grade 5 – Raghubir Singh Junior Modern School – was established in 1961 on a separate campus on Humayun Road, New Delhi.

His father, Sardar Sultan Pandit Singh, an accountant and banker (khazanchi) with the Imperial Bank of India, was well-regarded by both the British and the Indian aristocracy.

Reflecting its founder's pan-India vision, Kamala Bose, the school's first principal, was recruited from Calcutta (now Kolkata).

[19] In keeping with its nationalist origins, the school's house system honours significant figures in the history of India, namely Akbar, Ashoka, Azad, Gandhi, Kalam, Lajpat, Laxmibai, Nehru, Patel, Pratap, Ranjit, Shastri, Shivaji, Subhas, Tagore, and Tilak.

There are around twenty clubs and societies, including photography, aero-modelling, drama, painting, sculpture, community service, carpentry, Dance, music, senior and junior English debating societies, economics, astronomy,[20] computer science, physics,[21] and robotics.

The school has often invited prominent figures to give speeches and talks to the students; these have included heads of state, politicians, ornithologists, naturalists, artists, writers, economists, diplomats, and industrialists.

The club has been awarded a certificate in recognition of its services to the community by Chief Minister of Delhi, Sheila Dikshit.

[38] Modern also collaborates with The Collegiate School, Richmond, Virginia, in organizing the Community Development and Leadership Summit[39] and the International Emerging Leaders Conference.

Notable Modern School alumni have held senior positions in Indian politics, bureaucracy, and judiciary, these include Sanjay Kishan Kaul, former Chief Justice of the Madras High Court, Madan Lokur, Supreme Court Judge, Mukul Rohatgi, former Attorney General of India, Gopal Krishna Gandhi, Governor of West Bengal and Bihar, Kamlesh Sharma, Indian High Commissioner to the United Kingdom, and Amitabh Kant, chairman of the Delhi-Mumbai Industrial Corridor project.

Arun Shourie, former Cabinet Minister, former Member of Rajya Sabha, former editor of The Indian Express, Barkha Dutt and Raghav Chadha, of the Aam Aadmi Party, are also Modern alumni.

Golfers Daniel Chopra, Shiv Kapur, and Gaurav Ghei, cricketers Kirti Azad, Unmukt Chand, and Gautam Gambhir, tennis players Vishal Uppal and Karan Salwan, shooter Samresh Jung, and chess grandmaster Tania Sachdev are all ex-Modernites.

In the arena of fine and performing arts, Modern alumni include Yamini Reddy, Kuchipudi dancer, Abhay Sapori, Santoor maestro and music composer, film actress Amrita Singh, Amjad Ali Khan and his sons Ayaan and Amaan Ali Khan, Sarod exponents and music composers, Geeta Kapur, art historian, art critic and daughter of former principal, Mr. M.N.

Kapur, actors Sanjana Sanghi, Mallika Dua, Amrita Singh, Priyamvada Kant, Arjit taneja, Karan Soni, and Alok Nath, filmmaker Shekhar Kapur, conservationist and wildlife photographer Aditya Dicky Singh, and beauty pageant winner Ekta Choudhry.

In business, Rajat Gupta, former managing director of McKinsey and Company and one of the founders of the Indian School of Business, Gurcharan Das, former CEO of Procter & Gamble, and Surinder Mehta, founder of Prime Group and a Padma Shri awardee are Modern School alumni.