Awarding both undergraduate and postgraduate degrees, it is widely considered to be the oldest, most prestigious liberal arts and sciences college in India.

[5][6] Over the years, the college has produced distinguished alumni in fields like politics, administration, law, journalism, film and business.

[11] The other major aim for the foundation of the college was response to British Indian Government's policy of promoting English education in India.

Finally on 1 February 1881, in support of the work of the United Society Partners in the Gospel, the Cambridge Brotherhood founded the St. Stephen's College.

The Punjab University received its charter more than one year after the founding of St. Stephen's College, which became one of the two institutions first affiliated to it and moved into premises in Kashmiri Gate, Delhi.

[15] In 1906, principal G. Hibbert Ware abdicated his post in favour of S. K. Rudra who became the first Indian to head a major educational institution in India.

[16] Charles Freer Andrews, a prominent lecturer at the college and member of the Cambridge Brotherhood, was active in the Indian independence movement, and was named deenbandhu (friend of the poor) by Mahatma Gandhi on account of his work with the needy and the trade union movement.

It is also believed that Rabindranath Tagore completed the English translation of Gitanjali, for which he was awarded the Nobel Prize in Literature, while a guest at the college.

[24][25] As of February 2017, the governing body of St. Stephen's College has decided to go ahead with the proposal to seek autonomy for the institution.

[27] The college had previously functioned from a campus in Kashmiri Gate, Delhi, housed in distinctive Indo-Saracenic Revival architecture.

The college has also introduced a one of a kind certificate course in "Citizenship and Cultural Richness" which brings together a series of lectures by eminent Indian academics in a variety of fields ranging from science to literature, economics and social values.

The popular extra-curricular societies and clubs engage in activities concerned with debating, dramatics, wall climbing and trekking, film, social service, photography, quizzing and astronomy.