A little over a decade had passed since Swami Vivekananda visited Varanasi, the eternal abode of Shiva in January, 1902 after His momentous foreign tour. He stayed at the garden house of Kali Krishna Tagore located at Sigrol. By the time his name and fame had reached all the corners of India and a large section of the intellectuals and scholars assembled to hear this Vedantic Hindu Monk wherever he went and Kashi, one of the centres of great spiritual culture, was no exception. A large number of scholars came forward to visit, acquaint themselves with and listen to his religious discourses. 

Though Swamiji was not keeping well, he spared no pains to spread his idea of practical Vedanta - serving the God in man' the unique exposition which overwhelmed the audience. Sri Udai Pratap Singh, an idealist, philanthropic and religious minded Raja (Ruler) of Bhinga, who was then staying in his palace near the Durga temple on the out skirts of river Asi and practicing Kalpavas, learnt about the presence of Swamiji at Kashi. He longed to meet Swamiji at his place of stay which the Raja however could not venture lest his vow of confining self within his residence is broken and was therefore suffering from mental agony. The Raja confided to Govindanandaji, a veteran monk of Kashi, of his predicament when the latter came to see him. Govindanandaji met Swamiji and told him about the Raja's desire. At this, to help the Raja maintain his vow, Swamiji himself went to meet the Raja the very next day. The Raja felt extremely grateful to Swamiji, received him with great courtesy and humility and the two had a long discussion on various religious issues. The Raja was so much impressed by Swamiji's erudition, knowledge and purity of character that he ranked Swamiji with Buddha and Sankaracharya and sought his blessings. 

The Raja of Bhinga also suggested that if Swamiji would agree to establish a centre at Varanasi, the citadel of religious ideas, for spreading Hinduism and Niskama Karma' yoga the same would bring in great welfare to the countrymen. The Raja also agreed to provide necessary financial help for the same. While expressing his inability to accept the proposal owing to his ill health and lack of man power, Swamiji said, "God willing, I shall make it a point to depute one of my monastic brothers for starting a centre here in the near future for spreading the messages of Vedanta". Counting upon this assurance the Raja sent to Swamiji, within two days of the meet, a letter with an accompanying cheque for Rs. 500/-. Though Swamiji was not mentally prepared for the situation he instead of refusing it accepted the respectful donation and handed over the cheque to Mahapurush Maharaj (Swami Shivananda) and entreated him saying "Tarakda! can't we open a centre here for spreading the messages of Vedanta?" Swami Shivanandaji received the same but did not say anything in reply. 

Soon after Swamiji went back to Belur Math for observing the holy birth anniversary of Sri Ramakrishna. After coming back to Belur Math he first asked Sarat Maharaj (Swami Saradananda) for taking up the work of spreading the messages of Vedanta at Kashi the latter replied "I won't be of much help for such work at Kashi". Then he requested Swami Shivananda for the same who responded saying "First of all, you do come round and then I shall go". At that time Swamiji was seriously ill and as per the direction of his physician he was not allowed to take water and salt for forty days at a stretch. Swami Shivanandaji attended on him daily and administered medicines. Later, when Swamiji was feeling slightly better, he enquired of Swami Shivananda if the latter was willing to move to Kashi to open the centre, and if not, Swamiji would return the money to guard against being considered a cheat. Swamiji wanted that the money should be used for the specific purpose it was donated. Having heard Swamiji say so, Swami Shivananda agreed and proceeded to Kashi by the evening Mail train on 23rd June 1902, the auspicious day of Buddha purnima, accompanying Swami Achalananda (formerly Kedarnath Moulik of Kashi who was initiated by the Holy mother and later Christened to monasticism by Swamiji). Since Achalananda belonged to Kashi Swamiji considered him suitable for the purpose and arranged to send this disciple of his as an assistant to Swami Shivananda, the principal brother monk, for the new centre to preach Vedanta so dear to him. Meanwhile the work of Ramakrishna Sevashrama at Kashi was already in progress with the help of Charu Babu, Jamini Ranjan and others. 

Reaching Kashi, Swami Shivanandaji along with Achalananda stayed at the Sevashrama since a suitable place for a centre for preaching Vedanta was yet to be found. The presence of Swami Shivanandaji made the young devotees very happy and feel enthused. Revered Krishnalal Maharaj (Swami Dhirananda) was also resting at the Sevashrama at that time after his pilgrimage to Kedar - Badri. Efforts were being made by all to find out a suitable accommodation for starting a centre for preaching Vedanta. Within seven days a very old house with a garden, known as Khajanchi Bagicha' with lemon, guava trees and bushes around located in Luxa area could be found with the help of one Sri Kalidas Mitra, eldest son of Sri Pramadadas Mitra, a well established citizen of Varanasi and known to the monks of the Ramakrishna Math. He had met Swamiji during his stay at Varanasi and held him in high respect. He was also known to Swami Shivanandaji Maharaj. The said house along with a garden was taken over on a monthly rent of Rs. 10/- when Kedarnath (later Swami Achalananda) was staying at Kshemeshwar Ghat. Pramadadas Babu who was very much pleased to find for himself the things he witnessed there, volunteered to purchase and present Kedarnath some utensils for use during the worship of Lord Sri Ramakrishna. Sri Mitra also wished for a permanent Ashrama centre of Sri Ramakrishna at Kashi. Within a day or two, of securing the Khajanchi Bagicha Swami Shivananda, Swami Dhirananda and Swami Achalananda shifted to the same on 4th July, 1902 (23rd Ashara, 1309 Bengali era). Thus, at the great pilgrimage centre of Varanasi came up the first such centre for preaching religious ideals with new orientations suited to the age. 

Swami Vivekananda came to know of this event which, however, strangely coincided with the date of his entering into Mahasamadhi. This was the third centre of the Ramakrishna Math for preaching Vedanta that Swamiji verily wished for. Prior to this, a Sevakendra in Murshidabad was started by Swami Akhandananda and the Ramakrishna Math centre at Madras under the leadership of Swami Ramakrishnananda. By opening the Math centre at Kashi Revered Swami Shivanandaji opened up and showed the ways of application, of the work-oriented Vedantic philosophy, required for the new age, in one's own life. 

On the auspicious day of Rathayatra occurring a few days after the 4th July 1902 the large sized Lithograph of Sri Ramakrishna was brought to the Ashrama from Kedarnath staying at Kshemeshwar Ghat. Earlier, Swami Dhirananda expressed the views 'whatever food we take should better be offered first to Sri Sri Thakur'. At this, Kedarnath suggested that in that case it would be in the fitness of things if the Lithograph of Sri Ramakrishna which he had with him was placed in the Ashrama. Both the suggestions were approved by Swami Shivananda. Along with the Lithograph, a small-sized photograph of Sri Ramakrishna that Swami Kalyananandaji had given to this group of youth in 1901 was also brought to the Ashrama. Swami Shivanandaji suggested that photograph of Swamiji be placed alongside that of Sri Ramakrishna for offering puja and rituals to him also. For the purpose the photograph of Swamiji in a standing posture with a long stick in hand (of a parivrajaka-a wandering monk) which Swami Kalyanananda had with him was also brought to the Ashrama. Thus, on the said auspicious day of Rathayatra the images of Sri Ramakrishna and Swamiji were placed on the altar and were duly worshipped with Homa, Bhogaraga (food offerings) in a modest scale to mark the establishment of this new Ashrama centre. Generally, the sitting image of Swamiji in a state of meditation is worshipped in all the centres of the Ramakrishna Math and Ramakrishna Mission as well as in households of devotees except at this centre where the image of Swamiji in a standing posture is being worshipped. Even after the lapse of one hundred years both the photographic images can be seen in the Ashrama. 

The Lithograph of Sri Ramakrishna is now adorning the hall at the middle of the Ashrama premises and the photographic image of Swamiji is still being daily worshipped placing the same on a cut out space on the side wall of the Sanctum Sanctorum of the attractive Ramakrishna Temple made of Chunar stones and consecrated in 1936. Thus, the Ashrama centre was established. After prolonged discussion, Swami Shivanandaji Maharaj decided that it should be named Sri Ramakrishna Advaita Ashrama! He asserted that one has to move from Dualism to Monism and one can not move on to Monism straightway. He also said that this was in consonance with that of Sri Sri Thakur (Sri Ramakrishna). That is why the name 'Sri Ramakrishna Advaita Ashrama' was adopted.