The Institute of Medicine 2 was opened initially in Mingaladon as Medical College 2, a faculty of the University of Rangoon, under the Ministry of Education on 15th July 1963. The college became an independent institute, the Institute of Medicine 2, with the reorganization of the system of higher education in Myanmar in 1964. The Institutes of Medicine were transferred to the Ministry of Health from the Ministry of Education on 1st October 1973 and were supervised by the Department of Medical Education. The Department of Medical Education is now designated as the Department of Medical Sciences as production of all categories of human resources for health come under its jurisdiction. The institute was moved to the present campus in North Okkalapa township on 25th September 1996 and is now situated approximately 12 miles from downtown Yangon,

     In 1963, the Defense Services General Hospital was affiliated as the only teaching hospital of the Institute. The hospitals now affiliated to the institute include North Okkalapa General Hospital affiliated in 1970, Insein General Hospital in 1973, Thingangyun Model Hospital in 1996, South Okkalapa Maternal and Child Hospital in 1998, Mawlamyaing General Hospital in Mon State and Pathein General Hospital in Ayarwadi Division in 1997 among others. Hlegu township, together with its township and station hospitals and the rural health centers is designated as field practice area of the Institute especially for teaching of community medicine.

    The Institute started with an annual intake of 50 undergraduate students which has now increased to 600. Postgraduate courses were started in 1973 with Master degree programs in Anatomy and Physiology. The Institute is now conducting 14 Diploma courses, 14 Master degree courses, 6 Doctor of Medical Science courses in postgraduate studies and 7 PhD courses in basic sciences.