The Central Aerohydrodynamic Institute (TsAGI) was established on 1st December 1918 by Nikolai Yegorovich Zhukovsky, a professor at the Imperial Technical School and Moscow State University, as a research establishment based in Moscow. Initially, its role was to investigate aerodynamics, hydrodynamics, flight dynamics and the strength of aircraft, with other areas being added to this in later years.

In 1921 Zhukovsky died and was replaced as head of the Institute by S.A. Chaplygin. The following years would see the organisation expand and it was also home to the Tupolev design bureau between 1925 and 1936. In 1936 it was moved to a newly constructed town, Stakhanov, where a large site was acquired that allowed for the construction of facilities to test high-speed monoplanes.

The Second World War would see TsAGI involved in projects to help the war effort but following this new areas of research would be established, including supersonic and missile projects. In 1947 the town of Stakhanov was renamed Zhukovsky.

During the 1950s and 1960s, the institute would be involved in the development of the Soviet rocket program and would also have some input on the Il-96, Tu-204 and An-124 aircraft designs. During the 1980s it would be part of the development of the Buran spaceplane.

In 1994 the TsAGI was made a State Scientific Centre and in 2014 it became part of the National Research Centre.

Over the course of its history the institute has been awarded numerous awards including the Order of the Red Banner of Labor (1926), the Red Banner (1933), the Order of Lenin (1945), the Diploma of the Presidium of the Supreme Soviet of the RSFSR (1968), and Order of the October Revolution (1971).