The history of the college dates back to the colonial period when the British won the battle against the Marathas in Central India and established administrative divisions to control the area. Residency surgeons accompanied the European and the native troops who were stationed in the region. In the year 1848, Dr. E. Imphey was appointed as the residency surgeon of Indore and he took over the medical responsibilities from July 1848. Sir R. Hamilton who was the resident of Indore at that time recommended the establishment of a hospital, at Indore. It took nearly Rs.8500 to construct the building and the hospital started functioning from 1st September 1849. Dr.E. Imphey became the Superintendent of the hospital; twenty-five beds were reserved for the public and were called "charity wards". At that time the institution was called "Indore charitable trust".
The institution became famous in a short span of time and Dr. Impey constructed a building exclusively for female patients. As the hospital was burdened with more amd more responsibilities, Dr. Impey invited several doctors from Bombay to carry out the work.
At present there are various hospitals functioning under Mahatma Gandhi Memorial Medical College which are M.Y. Hospital, Cancer Hospitals, Chacha Nehru Children Hospital; M.R.T.B Hospital, Mental Hospital and the Kalyan Nursing Home. M.Y. Hospital is the teaching college hospital of M.G.M. Medical College.