The Peace Institute was founded in 1991 by a group of independent intellectuals, with an initial focus on peace studies and issues of violence, war and security. Among the projects dating from this period are ‘The Sociology of the Army’ (1991-1993) and two action research studies – ‘Yugoslavia-War’ (1991-1992) and ‘The Demilitarisation of the Island of Vis’ (1991-1992). Its activities also included a number of conferences and seminars, and a newspaper in English called The Intruder (1991-1992), which was published by the Movement for the Culture of Peace and Non-Violence.

In 1994 and 1995 the Institute’s field of interest was extended to embrace a wider range of contemporary social and political studies. Among the topics added to its agenda were racism and political conflicts, gender studies, cultural studies and political and social practice. Since that time the Institute has endeavoured to integrate academic work with concrete social and political engagement, leading to a number of action research studies and projects. In addition to the topics mentioned above, it has also begun to concentrate on political extremism, democratisation and equal opportunity politics in Central and Eastern Europe; independent women's and feminist movements in Slovenia; and issues of sexual abuse, refugees, civil service in place of military service, cultural industry and the like.

Towards the end of 2000 three additional programmes formerly conducted by the Open Society Institute, Slovenia were transferred to the Peace Institute - Media, Civil Society and East East Co-operation. With the inclusion of these programmes, its area of work was further extended to the fields of human rights, media studies and topics related to the EU and the Stability Pact. Today it continues to devote close attention to marginalised social and political issues that are usually ignored by mainstream institutions.