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Augsburg was founded as a seminary by Norwegian Lutherans. It was named after the Augsburg Confession of 1530, the primary confession of faith presented by Lutherans in Augsburg, Germany, and contained in the Book of Concord of 1580. Augsburg Seminarium opened in September 1869, in Marshall, Wisconsin. Three years later, by 1873, it moved to Minneapolis, changing its name to The Norwegian Danish Evangelical Lutheran Augsburg Seminary to reflect the name of the church body that sponsored the school. Expanding its mission, undergraduate classes began in the fall of 1874, with the first class graduating in the spring of 1879. In 1892, the school's name was shortened to Augsburg Seminary. In 1893, reacting to what it deemed overly-hierarchical elements in the Norwegian church, Augsburg leaders organized the "Friends of Augsburg", which, by 1897 had coalesced to form a new Lutheran denomination, the Lutheran Free Church, a body that flourished for 70 years. During its early years the college and seminary served men only, with women first admitted to the school in the fall of 1921. To further expand its mission, a high school level Augsburg Academy was provided on the campus until it closed in 1933.
Augsburg Seminary remained the name of the school until 1942, when its name was officially changed and expanded to Augsburg College and Theological Seminary, a name that had been informally used since the 1910s. When the Lutheran Free Church merged with the much larger American Lutheran Church (ALC) in 1963, Augsburg Seminary merged with the ALC's Luther Theological Seminary, later renamed Luther Seminary. The name of the remaining undergraduate college became Augsburg College. In 2017, the name of the school officially became Augsburg University.
August Weenaas was Augsburg's first president (1869-1876). Weenaas recruited two teachers from Norway—Sven Oftedal and Georg Sverdrup. These three men clearly articulated the direction of Augsburg: to educate Norwegian Lutherans to minister to immigrants and to provide such "college" studies as would prepare students for theological study.
In 1874, they proposed a three-part plan: first, train ministerial candidates; second, prepare future theological students; and third, educate the farmer, worker, and businessman. The statement stressed that a good education is also practical. Augsburg's next two presidents also emphatically rejected ivory tower concepts of education. This commitment to church and community has led to Augsburg's theme of over 130 years: Education for Service.
This seminarian focus began to change after World War I. In 1911, George Sverdrup Jr. became president. He worked to develop college departments with an appeal to a broader range of students than just those intending to be ministers. In 1937, Augsburg elected Bernhard Christensen, an erudite and scholarly teacher, to be president (1938-1962). His involvement in ecumenical and civic circles made Augsburg a more visible part of church and city life. After World War II, Augsburg leaders made vigorous efforts to expand and improve academic offerings. Thus by mid-century, the undergraduate college had become a larger part of the institution than the seminary and received the most attention.
As a result, Augsburg steadily added departments essential to a liberal arts college, offering a modern college program based on general education requirements and elective majors. Augsburg aims to reflect the commitment and dedication of its founders who believed "an Augsburg education should be preparation for service in community and church", [by] "Providing an education grounded in vocational calling, that provides students both the theoretical learning and the practical experience to succeed in a global, diverse world."