Udayan Bidyalaya started its expedition in 1955. At that time it was not called "Udayan Bidyalaya," instead it was known as "Dhaka English Preparatory School." Since 1955 until 1971, it was located in the land next to the Vice Chancellor’s house of Dhaka University.
The Dhaka English Preparatory school started functioning in June 1955. The menials quarters attached to the residence of the vice-chancellor were renovated and after some additions and alterations, the school started functioning. The land and the renovated semi-constructed building were leased out to the school on a nominal rent of taka ten only per month together with other terms and conditions. The syndicate of the Dhaka University in a meeting held on 31 May 1969 granted permission to the school to construct another story on the school building and it required the managing committee of the school to enter into an agreement with the university incorporating the terms and conditions prescribed in the executive council resolutions dated 28 February 1959. On a request, the Dhaka University accorded necessary permission to change the name of the Dhaka English Preparatory school as Udayan Bidyalaya and also to its upgrading as a High School. The University thus remains deeply interested to see as how well and smoothly the school functions and develops.
The Government, on 31 October 1980, approved the special type of managing committee for the Bidyalaya under rule 20(2) of the Managing Committee Regulations of 1977. The Dhaka Education Board installed the first such committee by an official order in November 1980 and the second such committee on 25 January 1984.
On 14 March 1986, the foundation of the 5 storied new building was inaugurated by the former Vice Chancellor of Dhaka University, Prof. Abdul Mannan. On 13 November, 1991, the students had their first class day in the new building. However, in 1992, the school physically moved to its new five storied building located at 3/3 Fullar Road near Jagannath Hall of Dhaka University.
In 1999 the school opened its Higher Secondary Program and renamed as Udayan Higher Secondary School.