The University of Takshasila existed in Taxila as early as the 7th century BCE.

Takshasila means “City of Cut Stone” or “Rock of Taksha”, founded on a hill that commanded the river Tamra Nala, a tributary of the Indus.

The University of Takshasila existed in Taxila, Sanskrit Takshashila, an ancient city of northwestern India, the ruins of which are about 22 miles (35 km) northwest of Rawalpindi.

Nearly 2,000 master-teachers taught an array of at least 68 topics at the ancient university.

The University of Takshashila during the Achaemenid Empire became an international center of learning.

The fields of science, mathematics, medicine, politics, warfare, astrology, astronomy, music, dance, religion, vedas, grammar, agriculture, surgery, commerce, futurology, and philosophy were taught at University of Takshashila.

The art of discovering hidden treasure, decrypting encrypted messages, the Vedas and the Eighteen Arts, archery, hunting, and elephant lore were additional topics available for students. Takshashila was described as the capital of the kingdom of Gandhara and a great center of learning with world-famous teachers in the Buddhist Jatakas.

By the 2nd century BCE, Buddhist schools started emerging within University of Takshashila. These schools were based within the Buddhist monasteries. The students would enter the monastery as a Shanga and live within the monastery with the monks and other students. The typical period of education was 12 years and Shanga would be elevated to the status of Pabbaja. Some students may decide to stay longer and after a period of 20 years may become part of the faculty as Shaman. While the basic philosophy was based on acquiring wisdom through teachings of Buddha and his disciples, there is considerable evidence that curriculum included many other disciplines. Both forms of schools existed within University of Takshashila until the destruction of city of Takshashila in the 5th century CE. Various other institutions of learning in India developed some sort of affiliation with University of Takshashila where students would complete early education at local institutions and then join University of Takshashila. An example of such collaboration existed between the University of Takshashila and institutions located in Benares. The students from medical school in Benares were known to come to University of Takshashila to complete additional medial education.

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The medical school was one of the most famous of the schools and started by Atreya Rishi. The field of Ayurveda medicine is based on the work of him and his students. The field even exist today and is incorporated into various disciplines of medicine. Charaka, the famous ancient Ayurvedic physician was an alumnus of TakshaShila. He simplified an older Ayurvedic work called Agnivesha Samhita into the Charaka Samhita, which may refer to as the first textbook of medicine. By 5th Century, Panini Daski who is known as the father of linguistics consolidated the University of Takshashila as the leading university for Sanskrit language and literature. Vishnu Sharma is believed to have written the Panchatantra collection of fables at University of Takshashila. Pingala was a mathematician, famous for his work, the Chandas shastra (chandas-śāstra) which was written in 3rd century BCE. The use of zero and binary numbers is sometimes attributed to Pingala. The discipline of martial arts, Sanatan Shastar Vidiya, was developed in the University of Takshashila. Some belief that Kung Fu was derived from this system as Buddhist monks travelled from University of Takshashila to China along the silk route. Objects made of alloy of Zinc and Copper, Brass, were discovered in Takshashila with high concentration of zinc (34%) which was much higher than cementation method which contain less than 28% of zinc used at the time. Such Brass was possibly made by mixing metallic zinc with copper perhaps pioneered in University of Takshashila.

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Chanakya, who authored the ancient Indian political treatise during his time in University of Takshashila, the Arthashastra, in the 3rd century CE that is considered pioneering and authoritative work in the field of political science and economics. One of his students, Chandragupta Maurya was the founder of the Maurya Empire in ancient India and reigned between 321 and 298 BCE. Chanakya as the chief minister of the Maurya Empire during Chandragupta Maurya rein was able to apply his principles of political science and economics to build an empire. During Asoka’s (grandson of Chandragupta Maurya) rule, Buddhist monasteries were built and Buddhist teachings would be incorporated into University of Takshashila. Mahāyāna branch of Buddhism originated in the University of Takshashila.

Takshashila was located at cross roads of important highways, which contributed to the success of the University of Takshashila. Takshashila was connected through the ancient "Uttarapatha" or the Northern Road to Patliputra, India. Greek writer Megasthenes, who was a Greek ambassador of Seleucus I Nicator in the court of Chandragupta Maurya, noted that a whole army of officials maintained this road. Takshashila lied in proximity to the ancient silk route. The Silk route, an ancient network of trade routes, that originated at Xi’an, China, followed the Great Wall of China to the northwest, passed through Persia and connected to Ur where it would merge with the Assyrian ancient highway. The Silk route would eventually end at the Mediterranean Sea port of Izmir.

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It is believed that over 10,000 students from China, Babylon, Syria and Greece in addition to Indian students studied there. Herodotus, an ancient Greek historian also known asfather of history, who was born in Halicarnassus in the Persian Empire would travel around 4500 kilometers in 5th century BCE to join University of Takshashila. Jivaka, personnel physician to Buddha, would travel around 1500 kilometers to join and complete his medical school at University of Takshashila in the 5th century BCE. Alexander the Great would arrive in Takshashila in 326 BCE and he and his Greek companions would be highly impressed by the philosophers in the University of Takshashila. The Greek writers mentioned the priestly class of Brahmanas and Gymnosophists (who pursued extreme asceticism) who were described as teachers of Indian philosophy in University of University of Takshashila. His dialogue with Dandamis, the most influential philosopher at the time is documented by Onesicritus. Alexander would take one the other philosophers, Calanus, in the University of Takshashila back with him to Persia.

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Takshashila had remained a regional capital for several hundred years. In the 2nd century BCE, the Indo-Greek kingdom of Bactria annexed Takshashila and a new city of Sirkap was built in Takshashila to serve as the capital city. Coin mints were set in Takshashila and metallurgy and coin making reached new heights. Gondophares, conquered Takshashila around 20 BCE, and made Takshashila the capital the Indo-Parthian Kingdom. The number of students increased dramatically in school of martial arts and military science, school of political sciences, and school of mathematics and economics, to meet the rising need of government and military officials in the new capital city. Thomas the Apostle and Greek philosopher Apollonius of Tyana visited Takshashila around 50 CE. University of Takshashila was taken over by the Gupta dynasty when Gupta rulers conquered Takshashila. Gupta rulers patronized institutions of higher learning and scholars from India and foreign countries continued to join University of Takshashila. There was an overall progress in art, architecture, literature and science but with emergence of other Universities in India, and each university started choosing a field of eminence. University of Takshashila became the leader in field of medicine. Gupta rulers led the 'the Hindu Renaissance' or the revival of Brahmanism or Hinduism in India and University of Takshashila would play an important role in this revival.

The invasion of white Huns around 470 CE laid the Takshashila city to waste.

Gupta rulers put more support towards developing Nalanda University resulting in Nalanda University becoming the largest university in India. The invasion of white Huns around 470 CE laid the Takshashila city to waste. The widespread destruction of the University of Takshashila during the invasion was perhaps the end of the first University known to man. There is some evidence that efforts were made to revive the University of Takshashila after the 5th century CE which were successful to a limited extent. Most of the teachers from University of Takshashila had moved to other places such as Nalanda University. Xuanzang visited Takshashila in 630 CE and found the University of Takshashila in ruins. Some remnants of the old University of Takshashila remained with some isolated Buddhist monasteries and teachers still in existence. The first university in the world, the great University of Takshashila, had disappeared into obscurity forever.