The development of its library was one of the first goals that IIMA set for itself. The first librarian, S. K. Seth was sent to the Harvard Business School for training and to identify suitable acquisitions. The Ford Foundation supported the library in its initial years. The library was first housed in the bungalow that the Institute occupied in Shahibaug (1962-65). A "hostel library" was also set up when the Institute hired temporary hostels for its students in 1964. When the campus was getting readied, the library moved into some of the houses built for faculty members and then finally into its current location in the mid-1970s.

The library was named after Vikram Sarabhai in 1972. VSL has had some illustrious librarians, who along with a strong professional team of library staff have brought it to where it is today. VSL has transformed itself into a hybrid library that offers world class facilities and a conducive learning ambience. It has more than 250,000 physical items and provides access to thousands of journals and eBooks, and hundreds of databases. In keeping with the intention of the architect, Louis Kahn, it is housed in the tallest building on the Main Campus.

VSL has transformed itself into a hybrid library that offers world-class facilities and a conducive learning ambience.