The Bharatiya Vidya Bhavan is not just an institution; it is a movement, a cause. Its objects have been, from its inception, to encourage the study of all aspects of Indian Culture, to help in the reintegration of the latter in the light of modern conditions; and to aid the fundamentals of Aryan Culture. The Bhavan is thus a centre in which our ancient learning and modern intellectual aspirations combine to create a new spirit and literature a new history and culture.

The Bharatiya Vidya Bhavan was founded on Kartik Sud Purnima, Samvat 1995 (November 7, 1938). In the address delivered by Shri Munshiji at the inauguration of the Bhavan he said: "For many years it had been the dream of the Sahitya Sansad to crystallize its work by creating a centre in which the ancient learning and modern intellectual aspirations of this land could combine to create a new literature, a new culture. The Bhavan will be a new association which will organise active centres where ancient Aryan learning can be studied and where modern Indian culture will be provided with a historical back-ground." The earliest departments to be started by the Bhavan were those of Sanskrit, Comparative Philology, Prakrit languages, Gujarati, Hindi, Indian History and Bhagavat Dharma. These departments were established within a very short time of the inauguration. The generous donation of Shri Mungalal Goenka enabled the establishment, in 1939, of the Mungalal Goenka Institute for Higher Sanskrit Studies, which was later developed into the Mungalal Goenka Samshodhan Mandir.

The first activities of the Bhavan were started in the premises of the Fellowship School on June 1, 1939. Subsequently they were transferred to rented premises at Andheri. Soon after this, the Department of Jain Studies was opened. With the co-operation of the Gujarati Sahitya Parishad, Shri Narmada Gujarati Shikshapith was formed. On September 1, 1939, the Mumbadevi Sanskrit Pathshala was opened as part of the Bhavan, with the help of the Mumbadevi Trust. In 1940, Shri Nagardas Rughnathdas Jyotish Shikshapith was founded, and the beginnings of a library were made. In the same year, a land measuring about eleven acres was purchased at Andheri from the Government and the generosity of several friends of the Bhavan. On September 14, 1940, Shri Munshiji laid the foundation stone of the building, which when completed in 1941, was opened by Dr. S. Radhakrishnan.

The new building was completed in 1949. Constructed on a grand scale keeping in view the growing needs of the Bhavan's activities, this building took two years and three months to complete and cost over Rs. 18,00,000. This achievement was made possible mainly because of the organising genius and untiring zeal of our Vice-President, Smt. Lilavati Munshi. Shri C. Rajagopalachari, the then Governor-General of India, declared the new building open on August 8, 1949. This Central Home of the Bhavan has proved to be the hub of cultural activity in Bombay. The inauguration in 1951, by Shri Munshiji, of the Bhavan's Book University and the promotion of the Sanskrit Vishva Parishad (World Academy of Sanskrit) with its head office in the Bhavan have added considerably to the activities of the Bhavan.

On account of its ceaseless efforts in the cause of the cultural renaissance of India, the Bhavan slowly developed into an institution of all-India importance.