The Institute of Technology (IoT), which enrolls more than 10,000 students, was established by in July 2009 by upgrading the former Faculty of Technology. The story of Hawassa University, Institute of Technology (HU-IoT) goes back to 1976 when its oldest department namely Agricultural Engineering and Technology that was founded as part of Awassa College of Agriculture. The other departments came into existence under the Faculty of Technology three years after the establishment of the university in 1997. Since then rapid developments have been observed in the number of staff members, infrastructure, laboratories, as well as engagement in a variety of University affairs and community services.

Later, the Engineering Capacity Building Program (ECBP) reform of the country was introduced and the institute was renamed with its current name, IoT. ECBP was established to facilitate the transformation of former faculties of technology into Institutes of Technology to better engage them in technology transfer, strengthen university-industry linkages, produce capable young engineering graduates and technologists, and enhancing entrepreneurial skills of the graduates. The newly enacted (2018) structure of HU-IoT has five faculties running 19 undergraduate and 18 postgraduate programs.