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The Indiana University Falls City Area Center was established by Floyd McMurray in 1941 as an extension center of Indiana University in New Albany, Indiana, and Jeffersonville, Indiana. Classes were initially held in classrooms at New Albany High School and Hazelwood Junior High School in New Albany, and at Jeffersonville High School in Jeffersonville. In 1945, IU Southeast moved into its own building in Jeffersonville, named the Indiana University Jeffersonville Extension Center.
As an extension center, IU Southeast's purpose was to permit freshmen and sophomore students to take classes near their residence before transferring to the Indiana University Bloomington main campus. The Indiana University Jeffersonville Extension Center was renamed Indiana University Southeast during 1968. Also, IU Southeast granted its first degrees in 1968.
IUS moved to its current 177-acre campus in New Albany, Indiana during 1973.
IUS is located 15 minutes north of downtown Louisville, Kentucky, in suburban New Albany, Indiana, at the edge of southern Indiana's picturesque "knobs," which is a region of rolling hills that run parallel to the Ohio River. The campus spreads over 180 acres (0.716 km²) just north of I-265 in Southern Indiana.
The Greater Louisville Regional Japanese Saturday School (グレータールイビル日本語補習校 Gurētā Ruibiru Nihongo Hoshūkō), a Japanese weekend supplementary school, is affiliated with IUS's Japan Center. It was established in January 1988 and holds its classes at Hillside Hall; its office is elsewhere in New Albany.