It was founded in 976 BCE, the 9th year of the reign of Song Dynasty under the leadership of Emperor Kaibao, and was one of four imperial academies of higher learning
Both Zhu Xi and Zhang Shi, (Confucian scholars) lectured at the academy. In 1903 the academy became a university, and in 1925 the Hunan University was established at this site.
As one of the four most prestigious academies over the last 1000 years in China, Yuelu Academy has been a famous institution of higher learning as well as a centre of academic activities and cultures since it was formally set up in 976 ( the Northern Song Dynasty ). the Academy, surviving the Song, Yuan, Ming and Qing dynasties, was converted into Hunan Institute of Higher Learning in 1903, and Hunan Normal College, Hunan Public Polytechnic School in succession, and was finally named Hunan University in 1926. It is the only one of ancient Chinese academies of Classical Learning evolved into modern institution of higher learning, the academy has witnessed a history of more than one thousand years without a break, also the historical transformation from Yuelu Academy to Hunan University is an epitome of the development of China's higher education, which mirrors the vicissitudes of China's education system. As a part of Hunan University, today the academy is a center of publication and research of ancient Han Chinese language, however it is one of the most important places of academic activities and cultures in China.