The South Carolina Lunatic Asylum, authorized in 1821, was one of the first state hospitals for mental health care, designed by Robert Mills with advanced fire resistance and security features. Originally built between 1822 and 1827, it catered to paying white patients, although some African-Americans, including slaves, were admitted before formal authorization in 1848. During the Civil War in 1865, the hospital briefly served as a prisoner of war camp, and the campus expanded over the years with new buildings and facilities, including a nursing school in 1892. By 1910, the hospital was overcrowded and underfunded, leading to the creation of a separate campus for African-American patients, named Crafts-Farrow Hospital.

Throughout the 20th century, the hospital faced ongoing issues with staffing, funding, and patient care, prompting a shift towards community-based mental health services in 1920. Legal challenges in the 1980s led to efforts to reduce the hospital population, and by 1996, the two campuses were consolidated. The site was eventually phased out for patient care, with some buildings used for state offices. In 2015, the Department of Mental Health ceased using the campus, which was later sold to a private developer. Despite a 2020 fire damaging part of the historic Babcock Building, renovations have continued, transforming the site into apartments.