Originally named Tactical Studies Rules, it came into existence in 1972 to basically write the rules for Dungeons & Dragons, which was originally called The Fantasy Game. In 1975, Tactical Studies Rules was dissolved and replaced by TSR Hobbies (and later shortened to just TSR, Inc. in 1983.)

The company had rapid growth : the first D&D Tournament was held in 1976 and the first D&D Basic Set was published in 1977, followed in 1978 with the Advanced Dungeons & Dragons. The company also developed a stable of books, both for the general public and aimed at the teen market, with the release of the DragonLance series in 1984 and The Forgotten Realms series in 1987 propelling it forward both in terms of books and games. Also, briefly in the mid-1980s, they picked up the trademarks and copyrights for Strategy & Tactics Magazine and SPI games.

However, internal problems and outside pressure started to show on the company and by 1996 they were deep in debt. In 1997, Wizards Of The Coast, Inc. purchased TSR (and WOTC itself was purchased by Hasbro, Inc. in 1999.)

Some games are still sought after, especially the first editions of the D&D Basic Set, Cohorts and Mage Stones, to name a few.