The aim of this article is to describe the foundation and development of the first distinct Institute of Pharmacognosy in the world and to provide a biography of its founder Julije Domac. The Institute was founded in 1896 as a separate institution at the University of Zagreb, Croatia, part of the Austro-Hungarian Empire at the time. In other European university centers, pharmacognosy institutes were founded together with pharmacology, botany, pharmaceutical or general chemistry. Julije Domac (1853-1928) graduated pharmacy from the University of Vienna (1874) and received his Ph.D. from the University of Graz (1880) with a paper elucidating the structure of hexene and mannitol obtained from manna. He lectured pharmacognosy at the University of Zagreb (1887-1924), wrote chemistry and pharmacognosy textbooks, and co-wrote the Croatian-Slavonian Pharmacopoeia.