Designated as an Institute of National Importance (INI) and excellence, it is the flagship project of the Ministry of External Affairs (India)[8] and the direct successor of the Nalanda monastery of medieval Magadha.

[18] It is an international university supported by 18 member countries of the East Asia Summit,[19] with the initial proposal being placed by the former President of India A. P. J. Abdul Kalam.

[21] Built at an initial cost of $210 million and spread over 485 acres, the campus is among the largest in India and the first in the country to implement a 'Net Zero' eco-recycling strategy.

The new campus in Rajgir was inaugurated by the Prime Minister of India Narendra Modi on June 19, 2024 in the presence of officials, ambassadors and dignitaries from all 10 ASEAN members.

[27] In 2009, during the 4th East Asia summit, ASEAN member states including Australia, China, Korea, Singapore and Japan promised further support.

[35][36] The jury consisting of architects including Liu Thai Ker chose Pritzker Prize laureate BV Doshi's firm, Vastu Shilpa Consultants as the winner of the design competition.

[43][44] Initially set up with temporary facilities in Rajgir, a modern campus spanning over 160 hectares (400 acres) is under construction with over 80 percent having been completed by 2021.

[49] On 28 March 2006 the eleventh President of India A. P. J. Abdul Kalam proposed the idea while addressing the Joint Session of the Bihar Vidhan Mandal for the revival of Nalanda University.

[55][56][57][58] Vijay Pandurang Bhatkar has been appointed the new chancellor on 25 January 2017 by President Pranab Mukherjee, in his capacity as Visitor to Nalanda University.

[45] The School of Languages and Literature/Humanities commenced its operations with one year Post-Graduate Diploma Programmes in Pali, Sanskrit, Tibetan, Korean and English in 2018.