Hospital Rehabilitasi Cheras was built at the former site of Lady Templer Hospital. Lady Templer hospital was built in 1952 and the foundation stone was laid by the Duchess of Kent.

After completion, it was officiated by Lady Templer, who was the wife of Sir Gerald Templer on 17th May 1956. It received its first patient in August 1956. Sir Gerald Templer was the British High Commisioner of Malaya from 1952-1956.

During its golden years, Lady Templer Hospital was a tertiary referral center, and became one of major referral center in Malaya. The first cardiac and thoracic surgery in Malaya was also performed in the hospital.

After the independence of Malaysia, the hospital continued to be the centre for cardiothoracic surgery until 1970s. It also became the centre for the treatment of tuberculosis and hence also known as Lady Templer Tuberculosis Hospital.

In 1984, the hospital is closed down and the facility was used as a government health clinic (Poliklinik Cheras).

The construction of this hospital began in late 2008 and took nearly three years to complete in 2011. Hospital Rehabilitasi Cheras starts its operation in July 2012.