The name, Nagarjuna University is quite significant in that the great Buddhist preceptor and Philosopher Acharya Nagarjuna founded a University on the banks of river Krishna some centuries ago and made it a great centre of learning, attracting a large number of teachers and students form distant parts of the world. The University was established by Act 43 of 1976 of A.P. State Legislature and Governed by Act 4 of 1991 covering 6 Universities of the State. The present Acharya Nagarjuna University is not very far from the haloed spot, as it derives its moral and Intellectual sustenance from Acharya Nagarjuna in which context the University has been renamed Acharya Nagarjuna University through the A.P. Universities (Amendment) Ordinance, 2004, promulgated by the Governor of Andhra Pradesh.

Acharya Nagarjuna University is conducting Andhra Pradesh Physical Education Common Entrance Test for the 22^nd time (12 times in combined Andhra Pradesh and 10th times in separate Andhra Pradesh) and 18^th time in succession by Acharya Nagarjuna University.