Studies of economics at Vilnius university were launched by Prof. J. Strainowski (1752-1815) who  started to teach the course in inherent rights in 1783, which, among others topics, included the economic theory of phisiocrats. The Statute of Vilnius University was adopted in 1803 and envisioned the teaching of several economic courses in budget, commerce and statistics. The first chair of political economy at Vilnius University was appointed in 1803.

The lecturers at Vilnius University were among the first in Western Europe who began to teach the economic doctrine of Adam Smith. Prof. J. Znoska was the first one at Vilnius University, who began to teach this discipline already in 1810. All teaching and research activities at the Faculty were terminated with the closure of the University by the Russian Regime in 1832.

The University was reopened in 1919 by Polish authorities with the establishment of Political Economy Department in the Faculty of Law and Social Sciences. In the Republic of Lithuania the University was first founded in Kaunas in 1922 and the Department of Economics was established in the Faculty of Law in 1930. With the restoration of Lithuanian sovereignty in Vilnius the Law and Humanitarian Faculties were transferred to Vilnius. The Faculty of Economics at Vilnius University was established in 1940. During Soviet occupation the Faculty was expanding quickly, the number of students in 1966 reached close to 4000. In 1969 the Faculty of Economics was split into 3 faculties, which were merged again in 1991. In 2017 faculty name has changed. The Faculty of Economics became Faculty of Economics and Business Administration.