On the recommendations of Nevill Vintcent of Messrs Tata and Sons (Aviation Department), the Indore State administration, under the rule of Maharaja Yashwant Rao Holkar II, selected the site adjacent to Bijasen for the construction of the airport in 1935. First air services from Indore to Gwalior, Delhi and Mumbai began in July 1948. The airport was later handed over to the Government of India in April 1950 under the Central Financial Integration Scheme. A new runway measuring 5,600 feet in length was completed by March 1966 at a cost of ₹15 lakh to accommodate larger aircraft of the time.

On 14 February 2012, authorities inaugurated a new and modern terminal building enabling both domestic and international connectivity. In 2018, the airport was designated as an international airport establishing it as a prominent aviation hub in central India.

The city's strategic location gives the airport a central location, acting as a conduit for flights to and from the country's western, southern and northern regions. Additionally, the commercial value of the city and its proximity to industrial areas such as Pithampur SEZ and Sanwer Industrial Area offers the airport with various routes to different commercial markets in India. The airport also provides tourism connectivity on the religious corridor of India by serving as the primary airport for Ujjain Mahakaleshwar and Omkareshwar.