The Foreign Service Institute (FSI) was established by P.D. 1060 on December 9, 1976 as the career development arm of the Department of Foreign Affairs (DFA). It was also tasked to provide training to all government agencies assigned to the Philippine foreign missions. Beginning 1987, the FSI was mandated to provide research assistance to the DFA and to participate in the Department's planning review process. The Philippine Foreign Service Act of 1991 (R.A. 7157) further specified the FSI's mandate as follows:

To serve as the center for the development and professionalization of the career foreign service corps;

To serve as a research institution on issues and problems with foreign policy implications, global and regional strategies and management of foreign affairs; and

To serve as the institutional consultant of the Department on matters related to foreign policies and programs as well as development, management, planning and review.