This college has been established after seeing the growing curiosity of people towards the world's oldest medical system of Ayurveda which is successful in removing diseases which are obstacles in the accomplishment of the four aims of human life and its effect on incurable diseases. For this purpose it has been named after the renowned and supreme ascetic Vaikunthavasi Mahatma Swami Raghavendracharya Tridandi Ji. The poor and resourceless people of the rural areas should get cheap and successful medical treatment near their homes.

Inspired by this sentiment, Seth Gangadhar Dalmia, a leading philanthropist of Gaya city, keeping in mind the sentiments of the people of this place, took a resolution, with the inspiration of the founder secretary of the college, Jagadguru Swami Raghavacharya, to establish such a well-equipped Ayurveda college, which would have a complete system of study and learning, along with the facility of modern Ayurveda, hospital, where people from different parts of the world can come to get rid of diseases through Ayurveda treatment and gain health benefits, and the students studying there would be provided with practical knowledge along with theoretical knowledge.

To fulfil this objective, this college was started in the year 1978, which is affiliated to Baba Saheb Bhimrao Ambedkar Bihar University, Muzaffarpur and is licensed by the Government of Bihar and is currently approved by the Central Council of Indian Medicine, New Delhi.The huge new building of the college is situated outside the city in a clean and beautiful place with natural beauty which is near Karjara railway station. It has proper arrangement of outdoor and indoor hospital as well as crematorium for direct practice of students.