A group of young mechanics and foremen of the Royal Mint and Government Dockyard decided to form an association to promote knowledge and learning. The Association's objectives were to set up a library and museum of mechanical models and Architectural designs, as well as to organize lectures and discussions on science and technology.
Sir David Sassoon contributed Rs. 60,000/- towards the Institute's edifice to be built on the Southern Esplanade after the walls of the old Fort were demolished. The building was designed by J Campbell and D E Gostling, overseen by Col. F A Fuller, in the Venetian Gothic style.
On completion in 1870, the building's façade soon took prime position in the ensemble of buildings that gave a distinctive image to the area in fort known and loved as Kala Ghoda. A commemorative statue of Sir David Sassoon was erected in the foyer, sculpted by T. Woolner.
In March 1938, the Sassoon Mechanics Institute was rechristened the David Sassoon Library & Reading Room. The Library also held lectures on topics of national and international importance.
Today, the David Sassoon Library is one of the oldest institutions of this type functioning in Mumbai. It serves members of all age groups and professions, being conveniently located in the old business district in Mumbai. The Gardens behind the Library building are actively used for literary programmes, most notably during the Annual Kala Ghoda Art Festival.