Shanghai University was founded in May 1994, by consolidating four former institutions of higher learning: Shanghai University of Technology, Shanghai University of Science & Technology, Shanghai Institute of Science & Technology and the former Shanghai University. Shanghai University of Technology was once Shanghai Institute of Technology founded in 1960, and in 1972 the institute merged with Shanghai Institute of Mechanism with its headquarters on Shanghai Institute of Technology campus. The two were separated in 1979 and was renamed Shanghai Industrial University and Shanghai Institute of Mechanism, respectively with the admission of Chinese Ministry of Education. Shanghai University of Science & Technology was formed by East China Branch of Chinese Academy of Sciences in 1958. The president of the university was the chief of the East China Branch, and all the deans in related subjects were also the heads of the institutes of Chinese Academy of Sciences in Shanghai, so the university had a very close relationship with all the academies and institutes. The former Shanghai University was founded in 1983, including School of Liberal Arts, School of International Business, School of Fine Arts, School of Engineering and School of Law. These schools respectively came from branch of Fudan University, branch of merged Shanghai Foreign Studies University and Shanghai Mechanics College, Shanghai Fine Arts College, part branch of merged East China Normal University and Shanghai Science & Technology University, Shanghai College of Law. Shanghai Science & Technology College was once Shanghai No. 2 Science & Technology School established in 1959, and the school became a college in 1981.When the four universities and colleges decided to merge into one in 1994, the name of the school was the calligraphy by Chinese former President Jiang Zemin, and Chinese former Prime Minister Li Peng wrote an inscription: "Carry forward the traditions and cultivate men for profession." Former vice Prime Minister Li Lanqing also inscribed: "Make unremitting efforts to improve oneself and to reform, take advantage of the merger, improve the quality of teaching and foster more talented people for our country." All these inscriptions have profound implications.

In the 1920s, there was a Shanghai University in Shanghai. Founded in 1922, it was the outcome of the cooperation between the Communist Party and the Kuomintang(KMT). Yu Youren, a member of KMT, served as the president of the university, Yun Daiying was in charge of general affairs, Qu Qiubai was the Chair of Sociology Department, and many other CPC leaders and famous scholars worked there. However, Jiangjieshi and other KMT right-wing members forced the university to close after their counterrevolutionary coup. With a cautious study style and strong revolutionary atmosphere but a rather short history, the university contributed a group of useful people to the cause of Chinese liberation and development, including Li Shuoxun, father of Lipeng and a revolutionary martyr as well, and former Chinese President Yang Shangkun, etc.