The Faculty began teaching in 1965 as part of a new institute, soon to become the New South Wales Institute of Technology (NSWIT). In 1987, by Act of the Parliament of New South Wales, NSWIT was reconstituted as the University of Technology, Sydney, and commenced operation as UTS in January 1988. During 1988 and 1989, UTS amalgamated with several other institutions and parts of institutions, and the 'new UTS' came into being in its present form in 1990. None of the University's new partners had engineering schools, and so the Faculty of Engineering has continued in essentially the same form since its inception.

The first courses offered led to the award of Diploma in Technology. These were extended to Bachelor of Engineering level in 1971, and the diploma courses gradually phased out. The first Bachelor of Engineering degrees were awarded in 1972. Programs leading to Master of Engineering by coursework and by research were offered in 1975. The degree of Doctor of Philosophy by research was made available in 1986, initially by arrangement with another university and, from 1988, by UTS in its own right.

In 2003, the Faculty has some 3,000 undergraduate students and 1,000 postgraduate students. Of the latter, over 100 are candidates for higher degrees by research, and over 800 are enrolled for postgraduate awards by coursework.