In the early 1920s, the old football stadium, Illinois Field, was deemed inadequate. There was some sentiment for retaining the site, but it was too congested to expand the stadium adequately, so a new site was selected, in a largely undeveloped area at the south end of the campus. George Huff and Robert Zuppke were responsible for pushing most of the fundraising for this project.

Memorial Stadium was completed in 1923 at a cost of US$1.7 million, which, adjusted for inflation, is equal to $25.8 million in 2020. Its original U-shaped design borrows some form from the earlier constructed Harvard Stadium. The project's general contractor was English Brothers of Champaign, who are in business to this day. The name was chosen in honor of the dead from World War I. The original construction was financed with donations from University students, alumni and others. At the time, the stadium consisted of double-decked stands on the east and west sidelines. The single-decked horseshoe around the south end zone was later completed, along with a large student section near the north end zone.

Heavy rain during the construction resulted in a bulldozer sinking into the field. It was decided the expense of removing the bulldozer would have been greater than leaving it buried under the field, and it remains there today.

The bell of the USS Illinois (BB-65), an Iowa-class battleship that was never completed, is on loan to the university and is in use. It is traditionally rung when the Fighting Illini score a touchdown or goal during home games.

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