The Ashram was opened in August 1978 by Swami Muktananda (also known as Baba), the spiritual head of the Siddha Yoga tradition, on his third and final world tour. It was established to support the practices of all those who had become interested in Siddha Yoga meditation since Baba's first visit to Australia in 1970. The Ashram's dedication ceremony was attended by many members of the community, including the Mayor of Fitzroy.

Since its opening, it has been visited by a diverse range of people, of all ages, backgrounds and occupations. They have one quality in common - their readiness to explore the mysteries and meanings of life, and realise their inner truth through meditation.

When Baba Muktananda died in 1982 and took Mahasamadhi (the final merging into divine consciousness), he passed the full power and authority of the ancient Siddha Yoga lineage to Gurumayi Chidvilasananda. Gurumayi has visited the Melbourne Ashram many times. The Ashram reflects Gurumayi's dedication to continuing Baba's work, and her devotion to serving the world.

The Ashram is elegant, comfortable, friendly and full of light. Often full of activity, it is also the centre of deep stillness.

It has a large meditation hall, study rooms, a tea shop, a reception area, a large front verandah and a garden. While there is much camaraderie among the people who attend the Ashram, there is no formal membership. People come and go as they wish, at the same time honouring the Ashram discipline and daily schedule.

It is a spiritual sanctuary for people of all faiths and beliefs, based on the understanding that meditation belongs to everyone.