In November 1980, the Director of Education submitted a proposal to the government calling for the establishment of Institut Teknologi Brunei. He suggested that such an institution be created to expand the provision of technical education in Brunei Darussalam. A little less than two years later, in February 1982, the proposal was accepted by the government.
As the physical establishment of the institute was expected to take some time to complete, Pusat Latihan Teknikal Brunei was developed and expanded as an embryo for the institute. Towards the later stages of its establishment in October 1985, the institute was assisted by Leeds Polytechnic in the development of its curriculum, secondment of staff, procurement of books and equipment, and recruitment of contract staff in the United Kingdom. Less than five months later, the institute took in its first intake of students.