The Juilliard School was founded in 1905 as the Institute of Musical Art. The intent was to found an American music academy to rival European conservatories. Dr. Frank Damrosch, the godson of Franz Liszt and the head of music education for New York City's public schools, thought Americans shouldn't have to go abroad to study. With the financial help of James Loeb, he planned for 100 students but demand soon caused them to expand. The original school at 12th Street & Fifth Avenue moved to Claremenot Avenue.

On his death Augustus D. Juilliard left money for the advancement of music. In 1924, the trustees of his bequest founded the Juilliard Graduate School to help music students complete their education. In 1926, the Graduate School and the Institute of Musical Art merged as the Juilliard School of Music, under Columbia University professor John Erskine. The schools still had two deans and were not combined until 1945. Composer William Schuman, who won the first Pulitzer Prize for music, became president of the combined schools in 1945. He established the Juilliard String Quartet in 1946 and the Dance Division in 1951. In 1968, a Drama Division was created with John Houseman as its first director. In 1969, Juilliard moved to Lincoln Center.

Juilliard was a member of the boards of directors of National Bank of Commerce, the Chemical National Bank, Bank of America and the Atchison, Topeka and Santa Fe Railroad. He was a trustee of the Guaranty Trust Co., Title Guarantee and Trust Co., New York Life Insurance and Mutual Life Insurance. He served as president of the Metropolitan Opera and The American Museum of Natural History, the American Geographical Society and the Ohio Geographical Society. He was a member of the following clubs: Metropolitan, Union League, Tuxedo City, New York Athletic and the Huguenot Society of America.

When he died, he left the bulk of his estate, $5 million, for the Juilliard Musical Foundation. Its purpose was to 'aid all worthy students of music in acquiring complete adequate musical education either at appropriate institutions now in existence or hereafter to be created, or from appropriate instructors in this country or abroad; to arrange for and to give without profit to it, musical entertainments, concerts and recitals of a character appropriate for education and entertainment of the general public in the musical arts and to aid the Metropolitan Opera Company in the City of New York for the purpose of assisting it in the production of operas.' The Juilliard School is famous today.