The history of FAMSY began with the formation of the Muslim Students Association of Queensland MSAQ at Queensland University in 1964. In 1966, during the AFIS (predecessor of AFIC) congress, MSAQ suggested that each University in Australia should set up its own Muslim Students Association (MSA).
Later MSAs were established in Adelaide, Armidale, Melbourne, Newcastle and Tasmania.
In 1968, the six pioneer MSAs founded Australian Federation of Muslim Students Associations AFMSA. In 1983 AFMSA became "Ittihad al Jamaat Al-Islamiah" (Federation of Islamic groups), and its membership was then also opened to non-students. In 1991 this name was changed to FAMSY (Federation of Australian Muslim Students and Youth).
Currently, FAMSY has chapters in four Australian states, New South Wales, Queensland, South Australia and Victoria.