The Institute was established in 1868 originally as a reading room, in a rent-free house donated by the Cwmaman Coal Company. Very soon a library was added, providing a place where local people could read books and children could be educated within the village. Early on, local-working men had ambitions to create a much-needed Institute and a campaign to raise funds to establish a suitable building began.
In 1884, a committee of officials at Cwmaman (Shepherd's) Colliery started a scheme whereby a half penny in each pound was deduced weekly from the wages of workmen at the colliery and the movement to establish a purpose-built Public Hall & Institute was born. Twelve trustees were appointed and the Building Committee started its fund raising.
 Funds had to be raised to meet what must have seemed an unachievable target of some £1,500. In March 1892 Lord Aberdare opened the current building. It provided the village with a new complex, including a public hall with seating for some 700 people, reading rooms, a billiards room and a caretaker's cottage.
During the 20th century, the fate of the Institute was inextricably linked to the demise of coal mining in the Cynon Valley. With the closure of local collieries from the early 1960s onwards, the Institute found it harder to raise local funding and commitment. The fabric of the building began to deteriorate during the 1960s and 1970s, while at the same time, membership of local groups and societies grew and there was new interest in maintaining the building as a community centre for Cwmaman.
 The current building is the result of a complete capital redevelopment project, the total cost of which was £3.8m. Funding for this project came from a range of public and private sources. Building phase 1 ended in June 2000. Phase 2 commenced in July 2000 and was completed with the official opening by HRH Prince of Wales on the 23rd July 2001.
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