Transfusion Medicine Unit or formerly known as Blood Bank Unit began operating on 01 August 1983 in conjunction with the establishment of Hospital Universiti Sains Malaysia and is one of the units under the administration of Hospital USM that provides diagnostic, therapeutic, research, and learning services.

Officially, the unit became fully operational on 16 January 1984 with a staff of 13 people led by a Medical Officer. On 22 January 1984, Blood Bank Laboratory began offering tests related to the use of blood to patients and produced blood components for transfusion use. In line with developments in the field of transfusion, this unit not only serves to supply blood, but also provide therapeutic services.

Blood Bank Unit was renamed Transfusion Medicine Unit beginning on 01 June 2003. In line with the university's objective to make USM a reference and research center for experts from within and outside the country, this unit constantly evaluates and develops new services related to transfusion medicine.

Transfusion Medicine Unit of Hospital USM is located on the ground floor of Block 218, between the Therapeutic Drug Monitoring Laboratory and the Endocrine Laboratory and near the USM Department of Development and Asset Management.