After the Siamese revolution of 1932 which changed Thailand from an absolute monarchy into a constitutional monarchy, Maj. Luang Thurawaithayawiset, chief doctor of the forces based at Paruskavan Palace, sought to find a medical facility to treat and care for army soldiers and thus proposed to Col. Phraya Songsuradet to find a location.

The location was finally settled at Phaya Thai Palace and King Prajadhipok approved of this project.

After the war, the need for an improved quality of care as well as increased education for military medicine was highlighted.

On 1 January 1946, the division became the 'Army Hospital' and operations were transferred directly to the Army Medical Department.

Phramongkutklao Hospital operates a number of Centers of Excellence including: