The origin of Albizu University dates back to the year 1966, when the Instituto Psicológico de Puerto Rico (Puerto Rico Institute of Psychology) was founded with the specific objective of offering a master of science degree in clinical psychology.

At that time, there were very few mental health professionals on the island and most of them received their professional education outside Puerto Rico. Upon completing their studies outside the country, returning mental health professionals were confronted with the necessity of adapting their training to Puerto Rican sociocultural realities. A distinguished Puerto Rican psychologist, Dr. Carlos Albizu-Miranda, developed the Instituto Psicológico de Puerto Rico in response to the need for culturally sensitive professional training.

In 1971, the name was changed to the Centro Caribeño de Estudios Postgraduados (Caribbean Center for Advanced Studies), and, in 1980, Dr. Albizu-Miranda established the Miami Institute of Psychology in response to the need for graduate psychology programs sensitive to cultural and ethnic issues in the continental United States. In January 2000, the two-campus institution was renamed Carlos Albizu University in honor of its founder and is now known simply as Albizu University.

The university is today an educational institution whose programs of study and research are founded, both in theory and practice, on the multicultural heritages of Puerto Rico and South Florida. Through the programs at its two campuses, Albizu University provides professional training that is relevant and responsive to the mental health needs of multicultural communities and to the necessity for culturally sensitive research, thereby contributing to the development of the professions of psychology, health, education, and human services.