The Hospital started as Africa Hospital at Osogbo and was renamed "General Hospital" like other sister institutions throughout the country then. By the late 1960's, speacialist medical care was already being carried out by specialist staffs that were already working in the hospital. This speacialist status of the hospital has so remained till April, 1998. With the creation of Osun State in 1991, the hospital was upgraded to a State Hospital. In 1993, Osun State Government acquired a private medical facility i.e Mercyland Hospital, located some three kilometers away from the State Hospital, in Egbedore Local Government, to become an annex of the state Hospital, Osogbo.<br />
The State and Mercyland Hospitals were released to LAUTECH for establishing a Teaching Hospital in June 1996. However, it became a Teaching Hospital by an edict promulgated by the Osun State Military Administrator, Lt. Col. Anthony Obi, the visitor to the University. The edict was gazetted on the 25th September, 1997 (No. 8, Vol. 2, Osun State Notice No. 24) which was amended by Edict No. 2 of 1999 Osun State dated 25th March, 1999. The Hospital Management Board was inaugurated on 29th July, 1999 by the Executive Governors of Oyo and Osun States, Alhaji Lam Adesina and Chief Adebisi Akande respectively in Osogbo. Initially, the General Hospital and Mercyland Hospital wings were used for Teaching of the Medical Students. These consist of two hundred and sixty beds. In addition, a collaborative arrangement existed wherein, the Osun State Hospital at Asubiaro, Osogbo is also being used as a training site for the medical student. Today, LAUTECH Teaching Hospital Ajegunle, Osogbo has remained the teaching hospital accredited for the training of students and resident doctors.

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