The library's collection consists of over five million items, which in addition to books includes manuscripts, paintings, maps, photographs and newspapers, with a special focus on material from Victoria, including the diaries of the European founders of present-day Melbourne John Batman and John Pascoe Fawkner, the folios of colonial explorer James Cook, and items related to Ned Kelly, notably his armour and the original Jerilderie Letter.

In 1853, the decision to build a combined library, museum and gallery was made at the instigation of Governor of Victoria Charles La Trobe and Sir Redmond Barry.

A competition was held, won by the recently arrived architect Joseph Reed, whose firm and its successors went on to design most of the later extensions, as well as numerous 19th-century landmarks such as the Melbourne Town Hall, and the Royal Exhibition Building.

On the same day of 3 July 1854, the recently inaugurated Governor Sir Charles Hotham laid the foundation stone of both the new library complex and the University of Melbourne.

The library's first stage (the central part of the Swanston Street wing) opened on 11 February 1856, with a collection of 3,800 books chosen by Mr Justice Barry, the President of Trustees.

[6] In 1860 Joseph Reed designed a grand complex for the whole block including a domed section facing Russell Street to House the Museum and Gallery, painting a broad canvas that was more or less followed over the next century.

The northern part (now Hansen Hall) was added complete in 1864 by Abraham Linacre,[7] but the classical portico was not built until 1870.

[8] That year, author, journalist and bohemian figure Marcus Clarke joined the library staff, serving as sub-librarian from 1874 until his death in 1881.

On part of the land they occupied, Baldwin Spencer Hall was built (now the "Russell Street Welcome Zone"), and work began on the library's famed Domed Reading Room.

The Public Library, National Gallery and Museums Act 1944 organisationally separated the four major cultural institutions, while they continued to share the one site.

In 1959, the dome's skylights were covered in copper sheets due to water leakage, creating the dim atmosphere that characterised the Library for decades.

Orators took turns in speaking on various subjects, and it was a popular location for protest meetings and a rallying point for marches.

Some of these are used to house permanent exhibitions The Mirror of the World: Books and Ideas and The Changing Face of Victoria, as well as a display from the Pictures Collection in the Cowen Gallery.

In February 2010, the southern wing of the library building on Little Lonsdale Street was reopened as the Wheeler Centre, part of Melbourne's city of literature initiative.

In 2015 the Library embarked on a five-year, A$88.1 million redevelopment project, Vision 2020,[14] to transform its public spaces, programs and facilities to better meet the changing needs of the community.

On 29 April 2015 the Minister for Creative Industries Martin Foley announced that the 2015–16 State Budget would provide A$55.4 million towards the redevelopment of State Library Victoria, including the restoration of the Queen's Hall, the creation of a rooftop garden terrace, a dedicated children's and youth space, and the opening up 40 per cent more of the building to the public.

In 2024, the Library faced controversy for canceling online writing workshops aimed at teenagers, reportedly due to the host authors' pro-Palestine views in the Israel-Gaza war, despite the official reason being a "child and cultural safety review".

[19][20] The grassy lawn in front of the library's grand entrance on Swanston Street is a popular lunch-spot for the city's workers and students at the adjacent RMIT University.

A memorial statue of Sir Redmond Barry, Q.C., by James Gilbert[22] and built by Percival Ball was installed on the central landing of the main stairs in 1887.

World War I commemorative statues 'Wipers' and 'The Driver' were at the centre points of the 1939 diagonal paths, but were relocated to the ground of the Shrine of Remembrance in 1998.

[23] A statue of Charles La Trobe, by Australian sculptor Peter Corlett, was installed in 2006 in the north east corner of the lawn.

[25] The collection includes a number of sculptures featuring children's book characters that are installed in the Library forecourt.

It closed to the public in 2003 due to disrepair before being renovated and reopening in 2019 as a mixed-use study space containing Victorian young adult literature.

Services related to family history include a vast collection of microfilm and microfiche, printed references, databases and biographies.

The exhibition features more than 300 rare, remarkable, historically significant items in the State Collection, celebrating the unique place books have in our culture.

The exhibition showcases over 140 photographs from the State Collection, alongside creative responses from emerging and established Victorian storytellers.

This is the third in a series of exhibitions at the Library featuring major international loans and about the significance of books and the written word to various cultures.

[33] As CEO of State Library Victoria and Chair of NSLA, Kate Torney played an important role on the steering committee, which met 100 times during the two-year build phase of the project.

Rock band Faker shot the music video for their 2005 single "Hurricane" in the La Trobe Reading Room.

The La Trobe Reading Room is the setting for a confrontation between Justin Theroux's character Kevin Garvey and a librarian in the fourth episode of the third season of the critically acclaimed HBO drama series The Leftovers.