The Observatory is 75 years old and was established by the British colonial government in 1932. From its establishment, the space observatory was operated by the Punjanb University's Physics department until the creation of separate research institute, Department of Space Science, in 1985. In 1985, the Punjab University decided to start an academic program in this field and consequently the Department of Astronomy was re-organized as the Department of Space Science in 1985. Since then, the space observatory was constituted under the Department of Space Science.
The space observatory, equipped with a seven-inche refracting telescope and two smaller telescopes, forms one of the departmental teaching laboratories. This is the oldest observatory in the country, and has remained a centre of learning for more than 75 year.