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The Deseret University (1850-1892) was created by an act of the General Assembly of the State of Deseret on 28 February 1850. Orson Spencer, a leader of the Church of Jesus Christ of Latter-day Saints (LDS), was appointed Chancellor. Due to hard economic times, including crop failure and increasing federal pressure on the LDS Church to abandon polygamy, basics such as books, teachers, and even a place to hold classes were in short supply. The first classes were held in private homes, or wherever suitable space could be found. Funds for supplies and teachers came from private donations. But it was not enough, and in 1853, the Deseret University was forced to suspend operations; for the next decade, classes were held on an intermittent basis in the Council House. The urge for an institution of higher learning was strong, in Utah, but the economic foundation was not substantial enough.

However, by 1869 conditions in Utah changed; relations with the federal government had improved, the economy had progressed, the transcontinental railroad was completed, and leaders of the State began to plan for a permanent University. The Deseret University got its first major boost in 1869, when the Regents hired John R. Park to be Principal and President of the University. Under Park, Deseret University finally developed solid roots in the community, and would not be forced to close again. Park spent 1871-1872 touring universities in Europe, studying their organization and curriculum. In 1876, Deseret University moved out of the Council House and into the Union Academy, an adobe building located at 200 West and 400 North, in Salt Lake City. A few years later, the Territorial Legislature appropriated funds to purchase a site and erect a building to house the growing University. The Regents obtained Union Square from the City of Salt Lake, and in 1884 moved into the first building they could call their own. In 1886, the University granted its first degrees, and the Alumni Association was organized, the Utah Territorial Library was transferred to the University in 1890, and a chair of Geology and Mineralogy, the predecessor of School of Mines, was established. Students were offered a four year Classical course; a three year Scientific course, and a two year Normal course. Student life began to develop; there were literary and debating societies established during this period, several attempts at a literary magazine, and the tradition of an annual University Ball was established. Even under trying conditions of economy and uncertainty about location, the University produced a number of graduates who would be heard of in many fields in the years to come.

Major changes took place in 1892; on 17 February 1892, the Territorial Legislature changed the name of the Deseret University to the University of Utah. John R. Park, in declining health, resigned as President; but before he resigned, he realized that the Union Square location was inadequate for a major university, and planned to relocate the University on the east bench of the Salt Lake valley. With that in mind, he began negotiations with the US Army to obtain land at Fort Douglas, and the Territorial Legislature petitioned the US Congress for a grant of land for a new campus. The stage was now set for the move to the east bench of Salt Lake City, a move that would portend much for the future of the University of Utah.