In 1901, a group of eight Chinese businessmen and community leaders wrote to the Governor of Hong Kong asking him to open an English school for Chinese children residing in the Colony. St Stephen's College was opened in 1903. The College was located at the junction of Bonham Road and Western Street in Sai Ying Pun, opposite the present King¡¦s College. The College was moved to Pokfulam in 1924 and Stanley in 1928.
During the battle of Hong Kong in the Second World War heavy fighting took place around the College, which was amongst the last British strongholds to surrender to the Imperial Japanese Army. Shortly after surrendering the Imperial Japanese Army broke into the College (which served as a military hospital during the battle) and murdered wounded soldiers of the Allied forces. The Japanese later merged the College with part of Stanley Prison to form the Stanley Internment Camp.
The College reopened after the war and a chapel was built in 1950 to remember those who died during the Japanese occupation.