In 1926 the Research and Study Society of Azerbaijan (investigations in a filed of geology and geophysics) was established.In 1932 Azerbaijan subdivision of Transcaucasian branch of Academy of sciences of USSR (AzSTBAS) (study of natural resources of Azerbaijan) was established on the basis of this society.In 1935 AzSTBAS was reorganized to Azerbaijani branch of Academy of Sciences of USSR (ABAS USSR) with a number of institutions, including geology sector.
In 1938 the geology sector was reformed into an independent research institution – Geology Institute on initiative of major Azerbaijan scientists – Sh.A. Azizbekov, M.A.Kashkay, A.A.Yakubov.The forming and development of the institution coincided with a period of rapid development of Azerbaijan oil and gas industry.The outstanding Russian scientists – I.M.Gubkin, D.V.Golubyatnikov, V.V.Bogachev, N.B. Vasseevich, V.V.Weber, A.V.Vinogradov, S.A. Kovalevskiy, D.V.Nalivkin, Y.F. Savarenskiy, Y.V.Riznichenko, M.A. Sadovskiy, V.V.Tixomirov, B.S.Sokolov, V.Y.Khain et al. played a great role in the establishment and development of the Institute. Georgian colleagues –L.Sh.Davitashvili, G.S.Dzotsenidze, I.V.Kacharava, M.S.Eristavi, A.A.Tsagareli, E.A.Dzhibladze et al. lent regular support in training of scientific personnel.
The Institute structure includes 24 research departments, the National Data Center of Azerbaijan, established in 2003 on the initiative of Preparative Committee of Comprehensive Nuclear Test- Ban-Treaty-Organization (CTBTO), Centre of common use of the analytical devices and equipment, Natural History Museum named after H.Zardabi. The Institute staff 230 researchers, including 4 academician of ANAS (1 corresponding member of RAS), 9 corresponding members of ANAS, 31 doctors of science, 97 candidates of science.