Chinmaya Vidyalaya Nileshwar had a humble beginning. Inspired by the formation of the Vidyalayas in the neighbouring areas, a few members of Chimaya Mission Nileshwar under the able leadership of the then President Dr. Suseela Ravindranath took the initiative of establishing an institution to impart value based education to the growing generation and the Vidyalaya came into being on 20th July 1983. It started functioning in the first floor of a rented building close to the present State Bank of Travancore, with 13 students and Smt. T.K Padmavathy was the first teacher of the Vidyalaya. The location of the Vidyalaya was shifted next year to the Kinavoor Kovilakaom in Padinhattam Kozhuval Nileshwar. With the passage of time, the increase in the number of students and the class room requirements could not be met with limited space at the Kovilakom. A new Building was constructed for the Vidyalaya at the present location situated on a hillock renamed as Chinmayagiri with its enchanting view of the rural and urban background. The inauguration of the Vidyalaya was done with the blessings of Pujya Guruji H.H. Swami Thejomayanand, the Supreme Head of Chinmaya Mission World-wide, presided over by the then President Sri T. K Muraleeddharan on 13.11.1998.

The Chinmaya campus extends to an area of 4 acres and 47.5 cents (18110 Sq.mtrs) of land located in the eastern side of Nileshwar, approximately 2kms from the Railway station and the town. The surrounding area is serene and calm with its vast expanse of land and unpolluted air. Away from the dins and confusion of the town area, the place is environment friendly and is an ideal location for the learners. The Prarthana Mandir of Lord Vighneswara, close to the Vidyalaya campus adds spiritual effulgence, inspiring and creating an atmosphere of peace and tranquility. The Vidyalaya is governed by Chinmaya Mission Educational and Cultural Trust, Nileshwar Unit with a Governing Body consisting of the local members of Chimaya Mission and other well-wishers interested in the cause.