The Dyal Singh Trust Library was established in Lahore in 1908 in pursuance of the Will of the Sardar Dyal Singh Majithia. It was first setup in the Exchange Building, which was the residence of Sardar Dyal Singh. Later, it was shifted to the existing building. Initially, it was started with one thousand books and a grant of Rs.60,000/= provided by Sardar Dyal Singh, to meet the financial requirements of the Library.
The income from his personal property was donated to run the day to day affairs of the Library, and they were supervised by a Trust. The Library enjoyed popularity before partition. However, in 1948 it suffered a considerable loss owing to riots in Lahore and a good number of books and its property were lost /damaged.
The Library remained closed for 12 years owing to the migration of its Non-Muslim Trustees. It restarted functioning in 1964 when its administrative control was taken-over by the Evacuee Trust Property Board, Government of Pakistan, Lahore. In 1985 under a directive of the President of Pakistan, its administrative control was transferred to the Education Department, Govt. of the Punjab, but was again repatriated to the Evacuee Trust Property Board, Government of Pakistan, in 1989.