The School of Aerospace Engineering at Universiti Sains Malaysia (USM) has its roots in the School of Applied Science, established in 1972 at the main campus in Penang. Initially offering basic engineering fields, the school underwent a major restructuring in 1984, leading to the creation of specialized schools and the expansion of USM's engineering programs. To accommodate the growing demand for space, the engineering faculties were relocated to the newly established USM Perak Branch Campus in Seri Iskandar, Perak, marking the foundation for future engineering schools, including Aerospace Engineering.

In 1998, the USM Aerospace Engineering Unit was officially formed, and by March 1999, it was elevated to the School of Aerospace Engineering, reflecting USM's commitment to advancing engineering education. The relocation of USM’s engineering faculties continued, and in 2001, the Engineering Campus was moved back to Penang, now situated in Seri Ampangan, Nibong Tebal. This move solidified USM's reputation as a hub for engineering studies in Malaysia.

USM's recognition as one of the top research universities in 2007 and the subsequent attainment of APEX status in 2008 highlighted its ambition to become a global leader in higher education. The university’s strategic plan, aimed at transforming its operations for sustainable development, focuses on nurturing talent, enhancing resources, and fostering supportive governance to achieve its goal of ranking among the world's top universities.