This hospital is working since pre-independence period and was known as Police Hospital. Initially this was providing medical facilities to Delhi Police personnel only and was also handling Medico-legal work and Post-mortems of the whole of Delhi. However in 1984 name of this hospital was changed from Police Hospital to Civil Hospital. Then in 1994 the foundation stone was laid for first Phase of hospital expansion, which was completed on 23rd August 1996 with 40 beds, and again the name was changed to Aruna Asaf Ali Government Hospital. Later in July 2000 another building in second phase was constructed with facilities for Operation and addition of 60 more beds.

Apart from this hospital, its administration also looks after the Mortuary at Subzi Mandi which is oldest and biggest mortuary in Delhi. This hospital also looks after 60 bedded Poor House Hospital, which is situated in Sewa Kutir Campus in Kingsway Camp.