The American Islamic College was established in 1981 as a private, not-for-profit, four-year college offering programs leading to the Bachelor of Arts degree in Arabic and Islamic Studies. In March 1983, the college purchased its present landmark building on Lake Shore Drive, and in September 1983 began its first academic semester.

The College was the only Islamic institution of higher education with degree granting authority in North America that provided a living context of Islamic faith, practice and ethics. In 1991 the College was granted the authority to offer the Associate of Arts degree in addition to the Bachelor of Arts degree. After some period of silence, now, under its new administration, the American Islamic College opens its doors to educate the Chicago community in particular and the American Community in general with a variety of degrees, programs and events.