Established in 1918 along with the University, the Library shifted to the present building that was inaugurated by Dr. S. Radhakrishnan, the then President of India on 3rd August, 1963. The Library building is situated on the highest altitude of the University campus covering a floor area of 62,000 sq.ft. The Library holds nearly 500,000 books and over 6000 manuscripts including rare palm leave manuscripts. It subscribes to about 400 periodicals and learned journals in various subjects. The holding of the library includes nearly 58,000 bound volumes of journals, 3,858 Government documents, 272 files, 6428 manuscripts, 143 microfilms and 9 CD ROMS. The Library caters to the needs of Post-Graduate students, research scholars, faculty members, and other employees of the university who are enrolled as members and special members. It provides reference, selective dissemination of information, documentation and bibliographical assistance to its readers. Reprographic facilities are also available on payment including inter-library loan facility. The University Library coordinates a library system, which links the libraries in all the campus and constituent college libraries. The library brings out a monthly list of additions and conducts Book Exhibitions to celebrate appropriate occasions such as the United Nations Week, Literacy Day, etc.

A Competitive Examinations Reference Section has recently been added to the library to cater to the needs of the candidates preparing for various competitive examinations. The VISION OF OSMANIA in the library has rare photographs of the previous Chancellors, Vice-Chancellors, Pro-Chancellors, Prof-Vice Chancellors, Plans of the campus buildings, Firman of Nizam VII and other official documents. It is a great attraction for the students and tourists who are interested in the past history of Osmania University.