Taman Budaya Yogyakarta was built in Bulaksumur on March 11th 1977 as a specific area of Cultural Development Center of Daerah Istimewa Yogyakarta. The ceremonial development of the buildings was done by Sri Sultan Hamengku Buwana IX as a Vice President of RI. Taman Budaya Yogyakarta was called as Purna Budaya which was made for assistance, maintenace, and improvement of culture, especially in Daerah Istimewa Yogyakarta.

Purna Budaya was developed in two concepts of building, Pundi Wurya and Langembara. Pundi Wurya became the center of art with various facilities such as art stages, dance studio, library, discussion forum, and administration office. The second part, that is Langembara, became the exhibition space, workshop space, cafetaria, and also several guest-house.

In 1978, Purna Budaya improved to be technical unit in culture under the consent of Dirjen Kebudayaan Taman Budaya with SK Menteri Pendidikan dan Kebudayaan RI No. 0276/O/1978. In 1991, there was a revitalitation on the organization and system of work of Purna Budaya based on SK Menteri Pendidikan dan Kebudayaan RI No. 0221/O/1991.

In 1995, rector of UGM asked Gedung Taman Budaya "Purna Budaya" Bulaksumur, through Mendikbud RI in the letter No. UGM/422/PL/06/IV, for students of UGM. Then the building of Taman Budaya Yogyakarta was developed in the heritage area of Vredeburg Fort upon agreement of Sri Sultan Hamengku Buwana X, BAPPEDA Prop. DIY, DPRD Prop. DIY, Walikota Yogyakarta, and Dirjen Kebudayaan.

Several years later, based on Perda No. 7 tahun 2002 and Keputusan Gubernur DIY No. 161/2002 tertanggal 4 November 2002, Purna Budaya (or Taman Budaya Yogyakarta) became UPTD Dinas Kebudayaan dan Pariwisata Propinsi DIY with several mission, as follows:
1. to improve and develop art and culture
2. to research and make experiment of art and culture
3. to make documentary and information of art and culture
4. to organize internal tasks (Tata Usaha dan Tumah Tangga Dinas)
5. to facilitate activities of art and culture

Taman Budaya Yogyakarta begins her new days and improves as "The Window of Yogyakarta". This art and cultural site strengthened her mission and vision in the world of art (biennale), world of media (yearly film festival), performance art (festival of theater, ketoprak, puppertry, dance, etc), educative programs (art training for children and youth), and also publishing activity (profile of artists, literature anthology, etc).

The process of data gathering and documentation done by Taman Budaya Yogyakarta become important and strategic to provide discussion and research of art and culture, such as data of art and culture potentiality, folktales, drama text, profile of artists, documentation of art performances, also collections of art (painting, graphics, sculpture, handicraft, etc).