History of engineering education in Nepal can be traced since 1942, when Technical Training School was established. Engineering section of the school offered only trades and civil sub-overseers programs. In 1959, Nepal Engineering Institute, with the assistance of the government of India, started offering civil overseer courses leading to Diploma in Civil Engineering. The Technical Training Institute established in 1965, with the assistance from the Government of Federal Republic of Germany, offered technician courses in General courses in General Mechanics, Auto Mechanics, Electrical Engineering and Mechanical Drafting. In 1972, the Nepal Engineering Institute at Pulchowk and the Technical Training Institute at Thapathali were brought together under the umbrella of the Tribhuvan University to constitute the Institute of Engineering and the Nepal Engineering Institute and the Technical Training Institute were renamed as Pulchowk Campus and Thapathali Campus respectively.

Since then, the Institute of Engineering has expanded considerably. The technician programs in Electrical, Electronics, Refrigeration/Air-conditioning Engineering were started in the Pulchowk Campus, with the assistance from UNDP/ILO. The Architecture Technician program was started by the IOE in its own effort. With the assistance of the World Bank and UK, later, the existing technician level courses were strengthened and Bachelor’s Degree level course in Civil Engineering was started. Similarly, with the assistance of the World Bank, the Swiss Government, and the Canadian Government, through Engineering Education Project; Bachelor Degree level courses in the Electronics Engineering, Electrical Engineering were started in 1994 and Mechanical Engineering and Architecture were started in 1995 in the Pulchowk Campus. From academic year 1998/99 IOE has started Bachelor’s Degree program in Computer Engineering. Similarly, from Academic Year 2001 Bachelor in Agricultural Engineering started in Eastern Region Campus, Dharan. From Academic Year 2011/12 Bachelor Degree in Geomatics Engineering started in Western Region Campus, Pokhara. From Academic Year 2005 Bachelor Degree in Industrial Engineering and from Academic Year 2015/16 Bachelor Degree in Automobile started in Thapathali Campus, Kathmandu. Likewise, from Academic Year 2018 Bachelor in Aerospace Engineering started in Pulchowk Campus, Kathmandu.