The Faculty of Humanities was established on the initiative of the Nusa Tenggara Faculty Foundation, chaired by Lieutenant Colonel Minggoe and Vice Chairman I, the Governor of Lesser Sunda, Teuku Mochamad Daoedsjah. The foundation collaborated with experts in the field of literature, such as Dr. Roelof Goris, Dr. Ida Bagus Mantra, and I Gusti Ketut Ranuh. In addition to preparing physical infrastructure, they also prepared the recruitment of teaching staff (lecturers), prioritizing those with doctoral degrees. Key figures contacted included:

Once preparations were complete, the Udayana Faculty of Letters was established on September 29, 1958.

From September 29, 1958, to December 31, 1958, the Udayana Faculty of Letters was managed by the Nusa Tenggara Faculty Foundation. However, on January 1, 1959, it officially became part of Airlangga University until August 17, 1962, based on the Decree of the Minister of Higher Education and Science No. 104 of 1962, dated August 9, 1962, regarding the Establishment of a State University in Denpasar. The first article of the decree stated that effective August 17, 1962, a state university would be opened/established in Denpasar, while the second article separated the Faculty of Letters and the Faculty of Teacher Training and Education from Airlangga University and integrated them into the State University mentioned in the first article. This Ministerial Decree was later reinforced by Presidential Decree (Keppres) No. 18 of 1963, dated January 31, 1963, which ratified the establishment of Udayana University in Denpasar, which at that time consisted of the Faculty of Letters, Faculty of Medicine, Faculty of Veterinary Medicine and Animal Husbandry, and the Singaraja branch of the Faculty of Teacher Training and Education (which would later become Ganesha University of Education).

Subsequently, based on the Rector's Decree (SK) No. 62A/UN14/HK/2013, the name Faculty of Letters was changed to the Faculty of Letters and Culture (FSB). Based on the Regulation of the Minister of Research, Technology, and Higher Education of the Republic of Indonesia No. 30 of 2016, dated April 22, 2016, and reinforced by Rector's Decree No. 309/UN14/HK/2016, the name Faculty of Letters and Culture (FSB) officially became the Faculty of Humanities (FIB) of Udayana University.