In 1996, a group of Shan and Karenni youths hosted several informal and formal meetings on the capacity building of ethnic youth communities of Burma, finally founding SKY - Shan and Karenni Youth coordinating committee.

Following a series of ethnic youth capacity building trainings, 9 different ethnic group representatives participated and considered ethnic nationalities youth development. With inclusiveness as a central belief, the National Youth Development Committee was formed in 1999 with the objective of performing nationalities youth development activities. As soon as NYDC was formed SKY handed on duties and ethnic nationalities youth development activities continued.

However, some nationalities youth movement leaders felt frustrated that NYDC only focused on development, so asked for the raising of awareness to participate in, or implement, politically related activities.   Following a nationalities youth seminar in 2000, ten different nationalities representatives of Karenni, Mon, Karen, Arakan, Kachin, Kayan, Palaung, Lahu, Chin and Pa-O, agreed to form the United Nationalities Youth League (UNYL) in 2001.

NYDC was formed by and for ethnic nationalities youth, with a focus on capacity building for the different nationalities youth of Burma. UNYL was formed with similar objectives. After informal and formal meetings were called, both agreed to host a joint committee, then in 2003 it was agreed to merge the two organizations. The title of the newly created youth alliance body was called Nationalities Youth Forum (NY Forum).