The Southern Bible Institute had its beginning in 1927 under the guidance and leadership of Dr. Edmund H. Ironside, who at the time was a student of the Dallas Theological Seminary. In collaboration with L. G. Foster, in spite of the racial turmoil of the times, Dr. Ironside began with three young male students whom he taught in his home on Joseph Street. As the school grew, it occupied rented quarters on Helen Street, College Street and on Flora Street. The Lord then made available a building located on the corner of San Jacinto and Leonard Streets which was purchased.

Founded under the name Dallas Colored Bible Institute, the original Board of Directors was formed with Dr. H. A. Ironside as Chairman and Dr. Edmund H. Ironside became the first president. After the death of Dr. H. A. Ironside, Dr. C.F. Lincoln was elected as Chairman of the Board (1951-1971) followed by Jack Rittlemeyer (1971-1989) and Jack Lincoln (1989-1997). Dr. Robert D. Reed was appointed Board Chairman in 1997 and currently serves in that role.

After years of sacrificial service to the school, during which time the name had been changed to the Southern Bible Training School, Dr. Ironside was called home by the Lord he loved and served so well in August, 1941. Upon the death of Dr. Edmund Ironside, Rev. Lester E. Huber was appointed Superintendent and served until 1945 when he resigned to return to Africa as a missionary.

On June 1, 1945, Dr. Henderson S. Fox began his duties as President. In the summer of 1948, three lots were purchased at 1415 Fleetwood Street and a building was erected. In 1956 two adjoining lots on Bank Street, were purchased. In May 1976, Southern Bible Institute moved to 830 S. Buckner which tripled its land size and building space. In August, 1993 Southern Bible Institute moved to its current 12 acre campus with 27,000 square feet of building for the price of $1,150,000. God blessed SBI to complete this debt payment in March 1999.

At the beginning, all classes were taught by Dr. Edmund Ironside. The school has grown to a point where classes are being taught by resident faculty supplemented by upper classmen and graduate students of Dallas Theological Seminary and other local colleges and universities. Classes are held both day (Day School began in 1954) and evening.

Dr. Henderson S. Fox retired in June, 1971, and Dr. Gordon R. Mumford was appointed president in July 1971. In 2006 Dr. Mumford retired from his position as President and accepted the role of Chancellor until his passing on September 4, 2006. On February 19, 2006 Dr. Martin E. Hawkins was appointed as the current President of Southern Bible Institute in 2006.