The idea on establishment of the Baltic Assembly Prize was conceived in 1992. The establishment of the Baltic Prize was inspired by the tradition of the Nordic Council Prizes.
On 31 October 1993 in Tallinn, Resolution on the Establishment of the Baltic Assembly Prizes in Culture, Arts and Science was adopted. Main aim of establishment of the Prizes was to "promote further cooperation among the three nations, provide new opportunities for exchanging cultural values and stimulate better understanding of the history and cultural heritage of the countries".
The aim of the Prize is to support outstanding achievements in literature, the arts and science; demonstrate the common interests of the countries in this region in upholding of their national identity and self-esteem; create an opportunity to learn about the achievements of the neighbouring countries; maintain a continuous interest among the people in Estonia, Latvia and Lithuania about developments in the Baltic States; strengthen cooperation among the Baltic States in the fields of literature, the arts and science; encourage more and more people to become interested in the intellectual values and languages of the Baltic nations; and raise the level of literature, the arts and science in the Baltic States.