Phi Beta Kappa was founded in 1776 at the College of William & Mary during a time when education was evolving in the American colonies. The society was established by five students—John Heath, Richard X. Tyler, John C. Bracken, William Short, and William S. Smith—who sought to create an organization that celebrated academic excellence and the liberal arts. The inaugural meeting fostered a platform for intellectual exchange, discussion, and close study of classic texts, which was a significant diversion from the more prevalent focus on trained professions at the time.

The society's name, 'Phi Beta Kappa,' is derived from the initials of the Greek phrase 'Philosophia Biou Kubernetes,' meaning 'Philosophy is the guide of life.' This motto encapsulated the society's objectives and aspirations for its members. The creation of Phi Beta Kappa set a precedent for numerous academic honor societies that would follow in promoting scholarship and leadership within colleges and universities across the nation. It aimed not only to honor top scholars but also to encourage a community of thoughtful discourse and inquiry.

As Phi Beta Kappa transitioned beyond its initial gathering, it began to establish chapters across various colleges in America, influencing the educational landscape significantly. The society also nurtured traditions of classical thought and ethics, which would play an increasingly critical role in American educational and cultural development through subsequent centuries. In the modern era, Phi Beta Kappa remains a premier academic honor society, with an enduring legacy of commitment to the liberal arts and sciences.