In 1962, it was founded as the Thumba Equatorial Rocket Launching Station (TERLS). It was called after Dr Vikram Sarabhai, who is widely regarded as the founder of India's space programme. The first Director of the Thumba Equatorial Rocket Launching Station was H.G.S. Murthy.

ISRO's Vikram Sarabhai Space Centre is one of the organization's key research and development centres. VSSC is an all-India facility that works on sounding rockets, the Rohini and Menaka launchers, and the SLV, ASLV, PSLV, GSLV, and GSLV Mk III launch vehicle families.

Among ISRO's facilities, the space centre is the largest. It is a research and development centre for satellite launch vehicles and related technologies. The centre conducts research and development in a variety of technology disciplines, including aeronautics, avionics, and composites, with the primary goal of enhancing India's launch vehicle technology development.

Projects and Entities form the foundation of VSSC's matrix organisation. Project activities are managed by core project teams. System development agencies are in charge of project activities at the system level. Polar Satellite Launch Vehicle (PSLV), Geosynchronous Satellite Launch Vehicle (GSLV), Rohini Sounding Rockets, Space Capsule Recovery Experiment, Reusable Launch Vehicles, and Air Breathing Propulsion are some of VSSC's major projects.