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In 1878 the Catholic Archbishop of Sydney, Dr Roger Bede Vaughan, a Benedictine, met with Fr Joseph Dalton SJ and asked the Jesuits to found a College for boys to meet the needs of the growing Catholic community in Sydney. A property known as St Kilda House on the corner of Cathedral Street and Palmer Street was rented for this purpose. Forty-five students were admitted on 3 February 1879. The number gradually increased during the year to one hundred and fifteen.

In September, 1883 the College moved to a property known as Auburn Villa in Darlinghurst. This building was later demolished to make way for St Margaret's Maternity Hospital. The name "Auburn Villa" was changed on purchase to ‘St Aloysius’, the patron Saint of Youth.

Numbers fluctuated considerably towards the end of the century. On 2 February 1903, the College relocated to its present site on Upper Pitt Street at Milsons Point.

As the College community increased, a new wing was constructed and in 1916 an attractive property known as Wyalla, opposite the College, was purchased. In 1939 some market gardens in Tyneside Avenue, East Willoughby, were acquired to build the College Sports Ground.

The number of students after World War II increased rapidly and after considering various options, the Jesuits re-developed the College, beginning in 1961. Existing buildings were demolished and rebuilt in four stages.

To celebrate its one hundredth birthday, the College embarked on a fifth stage which was opened in 1981. Then, in 1991, the College purchased Milsons Point Primary School and created a Junior School Campus in Burton Street, Milsons Point.

In 1995 the Jesuit community, who had always lived within the College, left the main building for a community house at 38 Jeffrey Street. This allowed the top two floors of the College to be renovated.

Most recently, in 2011, the College opened a new basketball court, swimming pool and gymnasium at Dalton Hall, next to Wyalla. Going forward, Plan Magis plans for further redevelopment of both Upper Pitt St and Wyalla, to meet the growing needs of the College.

Since its foundation in 1880, Saint Ignatius’ College, Riverview has been under the care of the Society of Jesus. After Archbishop Vaughan asked the Jesuits to open a day school in Sydney (St Kilda House, later to become St Aloysius’ College) and a boarding college on the North Shore, Father Joseph Dalton purchased the Riverview Estate on behalf of the Society of Jesus on 28 June 1878. Eighteen months later Father Dalton was appointed foundation Rector of Saint Ignatius’ College.

An advertisement was placed in the Catholic newspaper, The Express, stating that boys aged between eight and 12 would be received at Riverview ‘as soon as possible after the Christmas holidays’. Classes commenced in the cottage in February 1880. The cottage soon became very cramped as more boys arrived and in order to provide better accommodation, St Michael’s House was built. The building was designed by William Wardell and opened on the feast of Saint Michael, 29 September 1880. Further building took place at the College in 1882 with the construction of a wooden boatshed, and in 1883 the infirmary was built.

In its early years, the College offered ‘Classical and Modern Languages, History, Mathematics, the Natural Sciences and all other branches required for the Civil Service, the Junior, Senior and Matriculation Examinations.’ It was advertised that the curriculum included a modern side: mercantile subjects. By December 1882, with an enrolment of only 70 students, the College extended the curriculum to include English Composition, Writing, Music, Singing, Drawing, Painting, Irish History and Oral Latin. The main building of the College was constructed in three stages between 1885–1930 and the foundation stone was laid by Cardinal Moran Archbishop of Sydney on 15 December 1885. As originally designed by the architectural firm of Gilbert, Dennihey and Tappin, of Ballarat, the building was to be a huge square, representing four identical fronts, but only the South front was completed according to plan.