In order to cater to the transport needs of the travelling public of the then state of Mysore, Mysore Government Road Transport Department (MGRTD) was inaugurated with 120 buses on 12th September 1948.

The State Transport, which was being administered as a Department of the Govt. of Mysore was subsequently converted into an independent Corporation under Section 3 of the Road Transport Corporation Act, 1950 on 1st of August 1961. The assets and liabilities of MGRTD excepting those of BTS unit as on 01-08-1961 were passed on to the new Corporation, which was named as MSRTC. The assets and liabilities of the residual MGRTD i.e. of BTS Unit were subsequently passed on to the Corporation on 1st of October 1961. Thus, Corporation was ultimately established for the entire State of Mysore.