Thammasat University recognized the importance of the creation and preservation of arts and culture, which was one of the crucial missions of higher education institutions. In addition to learning management, the creation of graduates, the pursuit of research, and the provision of academic services to society, the university aimed to promote education, create knowledge, and offer academic services in arts and culture to society. Therefore, during the formation of the Higher Education Development Plan No. 7 (1992-1996), Thammasat University proposed and sought approval for the establishment of the Faculty of Fine and Applied Arts as part of the plan. The policy aimed to promote education, create knowledge, and provide academic services in arts and culture to society. This involved transforming the Department of Theatre and Performance Practice of the Faculty of Liberal Arts into a Faculty Establishment Project. The Ministry of University Affairs approved the university's request, thus including the Faculty Establishment Project of the Faculty of Fine and Applied Arts as part of the Higher Education Development Plan No. 7 (1992-1996). Subsequently, Thammasat University presented its project to establish the Faculty of Fine and Applied Arts to the Ministry of University Affairs. The Commission of the Ministry of University Affairs was supposed to approve and establish the Faculty of Fine and Applied Arts as a department under Section 8 of the Thammasat University Act, B.E. 2531. However, during the Commission's 11/2538 Meeting on December 7th, 1995, the Commission did not approve the university's request to establish the Faculty of Fine and Applied Arts. Instead, it instructed the university to operate this faculty as a Faculty Establishment Project. The Commission also allowed the faculty to arrange and provide educational services for other programs, in which the faculty possessed the capability to do so, besides the Theatre and Performance Practice Program. Therefore, in the academic year 1996, the Faculty Establishment Project of the Faculty of Fine and Applied Arts opened new programs specifically for this project: the Bachelor of Fine Arts Program in Theatre and Performance Practice and the Bachelor of Fine Arts Program in Textile and Fashion Design.

      Subsequently, during the terms of both the Higher Education Development Plan No. 8 (1997-2001) and the subsequent Higher Education Development Plan No. 9 (2002-2006), the Faculty Establishment Project of the Faculty of Fine and Applied Arts was not included. This omission was a result of decisions made during Cabinet Meetings on October 14th, 1997; December 30th, 1997; and February 3rd, 1998. The Cabinet, aiming to control government personnel expenses, implemented measures requiring all government agencies to suspend any requests to establish new organizations or expand internal organizations, especially those equivalent to a department or larger in size. This resolution remained in effect until the conclusion of the Higher Education Development Plan No. 9, lasting until the fiscal year 2006.

      Due to the aforementioned limitations preventing the University from establishing the Faculty of Fine and Applied Arts as a government agency, Thammasat University submitted the Faculty Establishment Project for the consideration and approval of the Thammasat University Council. During the Council’s 12/2544 Meeting on November 26th, 2001, it was resolved to establish the Faculty of Fine and Applied Arts as an internal unit of Thammasat University. This decision aimed to ensure the independent and efficient administration of the Faculty. In accordance with the Regulations of Thammasat University concerning the Establishment and Administration of the Faculty of Fine and Applied Arts, B.E. 2544, the Faculty was founded as an organization for education and research. Its objectives included managing learning activities, promoting academic knowledge in the field of fine and applied arts, and related fields, as well as the pursuit of research and the provision of services to society. To officially certify the Faculty’s status, it was considered to hold the full status of a faculty under the Thammasat University Act, B.E. 2531. As a commemoration of its establishment, the Faculty of Fine and Applied Arts observes November 26th of every year as its Founding Day from 2001 onwards