The Prime Minister of Malaysia, Dato' Seri Abdullah bin Haji Ahmad Badawi, has announced the government's approval to set up a university in Kelantan in the presentation of the 9th Malaysia plan on March 31, 2006.

In all study programs, the Cabinet has also set the curriculum framework at UMK focused on entrepreneurship education and enterprises.

Specializing in short and medium term growth is divided into three areas of study: Entrepreneurship and Business; Innovative and Heritage Technology and Agro-Industry and Science of Natural Resources.

Dr. Zainai Mohamed has been named as Universiti Malaysia Kelantan's first vice-chancellor, effective 1 October 2006.

UMK awarded an Honorary Degree of Doctor of Entrepreneurship (Human Capital Development) to the fifth Prime Minister of Malaysia, Tun Haji Abdullah Ahmad Badawi.

UMK simultaneously held the Proclamation ceremony of His Royal Highness Tuanku Chancellor, Sultan Muhammad V, the Sultan and Yang Di-Pertuan for the state of Kelantan Darul Naim as the Chancellor of UMK, and the appointment of His Royal Highness Dr. Tengku Muhammad Faiz Petra Ibni Sultan Ismail Petra, who is the Crown Prince of Kelantan as the Pro-Chancellor of UMK was held.

It is located in the Bachok district, near the tourist area of the Tok Bali beach.

The First Phase of the development involves the entrepreneurship and business faculty, the arts faculty, the university's language centre, the academic administration building, lecture halls and rooms, the administrative building, public spaces; and the Islamic centre and the mosque.

The Faculty of Agro Industry and Natural Resources was stationed at UMK Taman Bendahara in Pengkalan Chepa until 19 January 2012.

The campus is located on 270 acres that includes the department of sciences and technology of FASA as well as the administrative office.

The campus has a lecture rooms, labs, two hall, library and hostels for the students.