Known as the cradle of space sciences in India, the Physical Research Laboratory (PRL) was founded in 1947 by Vikram Sarabhai. PRL had a modest beginning at his residence, the "RETREAT", with research on cosmic rays.

The institute was formally established at the M.G. Science Institute, Ahmedabad, on 11 November 1947 with support from the Karmkshetra Educational Foundation and the Ahmedabad Education Society.