Plans for a "class annual" at Indiana University began as early as 1889, with a proposal by the senior class of 1890 for the publication of a yearbook. The inaugural publication of the Arbutus Yearbook, however, wouldn't be for another 4 years, debuting in the summer of 1894. Earlier iterations of a college annual were led by the Daily Student newspaper before the practice ebbed and was revitalized by the senior class in the fall of 1893 and arranged by a board of editors after, culminating in the publication of the first Arbutus yearbook. The venture of publishing a yearbook eventually became the responsibility of the junior class and was coordinated by a small group of students (the editorial board) led by an editor-in-chief and business manager under the broader organization of student-led publications, with an executive board intermittently established to facilitate the publications' longevity. Today, the responsibility of publishing the Arbutus does not belong to any class but is instead undertaken by interested students with the aim of gaining journalistic experience.

This student-led publication received its name from the trailing arbutus, a flowering evergreen species which students associated with the area. There was one hill, named Arbutus Hill, at which students of the past would congregate to relax and take in the sweet fragrance of the bloom. The location of this site is today protected, as this beloved plant is rare in this part of the country but grew in abundance on this hill due to its uniquely favorable conditions. While the style and format of Arbutus volumes change over time, the flower is a common and recurring motif.