The foundation stone for Dambi Dollo University was laid in 2007 E.C, marking the beginning of a government initiative aimed at improving access to higher education. The Ministry of Education formally acknowledged Dambi Dollo University (DaDU) in December 2008, in accordance with proclamation number 351/2008. Construction advanced swiftly in 2008, culminating in the completion of the first phase within the same year. By 2010 E.C, the university had introduced multiple departments to serve the needs of new students.

Dambi Dollo University is situated in the western part of Ethiopia and currently engages in teaching- learning, community-based research, and community services across fifty-eight departments. The university provides a range of multidisciplinary academic programs through its various colleges and schools, including the College of Social Sciences and Humanities, College of Natural Sciences, College of Education and Behavioral Sciences, College of Engineering and Technology, College of Agriculture and Natural Resources, College of Business and Economics, School of Law, and the Institute of Health.

DaDU is designated as a Comprehensive University by the Ministry of Education in 2020, aligning with Ethiopia's higher education differentiation. Dambi Dollo University is presently prioritizing the following centers of excellence such as Health, Agriculture, Technology, Mining and Eco truism. The university is actively engaged in developing technology to establish itself as a hub for innovation, gaining recognition both nationally and internationally for its unique brand.