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Established in 1960 in Yogyakarta, Java, Universitas Ahmed Dahlan (UAD) originally operated as the Institute of Teacher Training of Muhammadiyah, one of Indonesia's largest Muslim organisations. In 1994, it adopted the name of Muhammadiyah's founder, Ahmed Dahlan.

Universitas Ahmad Dahlan’s growth has been gradual, with the addition of programmes such as Indonesian language and literature in 1978, followed by English and maths in 1981. The university received licensing for doctoral programmes in 1979.

Universitas Ahmad Dahlan's campus expansion followed a similar pattern. Campus no one on Jalan Kapas, known for its serene atmosphere, was acquired in 1974 and remains a hub of activity. A new eight-storey building for economics and psychology is planned to open in 2024. Over time, Universitas Ahmad Dahlan has acquired five more sites, all conveniently located within the city of Yogyakarta.

In 2022, Universitas Ahmad Dahlan admitted just over 7,000 students, representing a 50 per cent growth compared to 2020. The student body includes undergraduates, postgraduates, and preparatory students, totalling around 27,000 students.

Universitas Ahmad Dahlan offers a wide range of programs across faculties of applied science and technology, teacher training and education, Islamic religion, industrial technology, pharmacy, public health, medicine, psychology, law, economics and business, and literature, culture, and communication.

The university also welcomes international students, with 410 international students in 2022, primarily from China and Malaysia. Universitas Ahmad Dahlan offers more than 1,000 online courses and was ranked second among the world's Islamic universities by the World Scholars Forum.