The institution has its roots in the Junta da Educação Nacional, founded in 1924 to grant scholarships, funds, and grants to foreign universities and institutions that promoted Portuguese language education.
In 1936, the institution's role was expanded to include the promotion of Portuguese culture and arts, as the Institute for High Culture (Instituto para a Alta Cultura). The institution was briefly named the Institute of Portuguese Culture (Instituto de Cultura Portuguesa), from 1976 to 1980.
In 1980, the institution's mission was refocused on language and renamed the Institute of Portuguese Culture and Language (Instituto de Cultura e Língua Portuguesa). The institution took its current name, after the Portuguese Renaissance author Luís Vaz de Camões, in 1992.
The Institute's Portuguese Language Centres (Centros de Língua Portuguesa or CLP) aim to promote the Portuguese language as well as co-operation with different countries in the field of education, including those where Portuguese is already spoken. This is in contrast to Spain's Instituto Cervantes, which is only represented in non-Spanish-speaking countries.
The Institute's Portuguese cultural centres (Centros culturais portugueses) are centres whose aim is the promotion of cultural relations between Portugal and other countries, including those with which Portugal has strong historical and cultural ties, and where Portuguese is already widely spoken. Like in language centres' counterparts, this is in contrast to Spain's Instituto Cervantes, which is only represented in non-Spanish-speaking countries.