Lyceum-Northwestern started as a single-room nursing school at the Dagupan City Polyclinic Hospital and was then called the Dagupan City School of Nursing. In 1974, Dr. Duque acquired the Northwestern Educational Institution. From the merger emerged the name Lyceum-Northwestern. In the latter part of the year, Lyceum-Northwestern spearheaded a consortium of local tertiary schools and founded the Northern Philippines Institute of Medicine. Lyceum-Northwestern became the "first medical school of the north." The institute began with an enrollment of 19 students. The consortium lasted two years.
On November 19, 2001, Lyceum-Northwestern was granted its university status.