The primary roots of Lambda Sigma Upsilon began in 1978. During the period of the mid to late 1970s protests and acts of civil disobedience became commonplace as students asserted their disappointment with Rutgers University, professors' tenure, national issues, and Latino student rights. The protest became so fervent they began closing down institutions and buildings, specifically the Livingston Library as well as Rutgers men's basketball games. 

As the acts of civil disobedience continued, students began to meet and be acquainted with each other from the protests. Minority students, particularly Latinos, felt that they were not getting the attention they needed to succeed in their academic endeavors.  A small group of these students began to meet at the Livingston Student Center and discuss the formation of an organization that would help students meet their goals and provide a family away from home. As the discussion continued, more men began to join the conversation eventually the group reached 20 members. Most of these men had met, at some time or another, during the protests or acts of civil disobedience, and thus shared common interests in the need for taking action to bring about positive change.

In the Spring of 1979, after speaking for a number of weeks, these 20 students suggested that the group form their own brotherhood, a Latino Social Fellowship. These men decided that a Social Fellowship would best provide a support, focus, and family for the Latino community on college and university campuses. These men began to meet on a regular basis, holding their final meeting in Tillett Hall at Rutgers University, Livingston Campus on April 5, 1979. At that time Lambda Sigma Upsilon Latino Social Fellowship, Inc. was established. The official motto of the fellowship was "Latinos Siempre Unidos" (Latinos Always United), thus the acronym "LSU". They effectively became the catalyst for change, and a vehicle for pertinent conversation regarding relevant issues between student and the university administration at Rutgers University.