The Shalem Center was established in 1994 in Jerusalem, Israel, as a research institute and think tank by Yoram Hazony, along with co-founders Daniel Polisar and Yael Eckstein, who met as students at Hebrew University. Initially funded in 1991 and formally launched as a not-for-profit organization, it aimed to confront post-Zionism, revive Jewish political thought and Zionist history, and enrich Israel's intellectual discourse through academic work in fields such as philosophy, political theory, Jewish and Zionist history, Bible and Talmud studies, Middle East studies, archaeology, economics, and strategic studies. The center received significant financial support from conservative American donors, including Roger Hertog, and produced publications, educational programs, and research to promote Zionist and Jewish thought.

Over time, the Shalem Center expanded its educational mission, leading to the creation of Shalem College in January 2013 after receiving accreditation from the Council for Higher Education in Israel. Shalem College, which grew directly out of the center, is Israel's first liberal arts college, based in Jerusalem. It offers an undergraduate program with degrees in Israel studies, philosophy, and Middle Eastern history from a Zionist perspective, emphasizing a Western classical education integrated with Jewish values and texts, classical philosophy, and Western thought within a Zionist framework. The college fosters an academic environment that combines rigorous scholarship with Jewish heritage and Israeli identity.

The organization has been noted for its conservative ideological orientation, influencing public discourse in Israel on topics like Zionism and national identity. While primarily academic, its think tank activities have positioned it within networks of influence involving American Jewish philanthropy and Israeli intellectual circles.