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The investment from the Harry Potter author will go towards creating new facilities at the Anne Rowling Regenerative Neurology Clinic so that scientists can look into ways to treat and improve the lives of those who suffer from the likes of Alzheimer's and Parkinson's.
Anne Rowling died after complications as a result of MS at the age of 45 in 1990. The centre was built following a donation from JK Rowling back in 2010.
Rowling said: "When the Anne Rowling Clinic was first founded, none of us could have predicted the incredible progress that would be made in the field of regenerative neurology, with the clinic leading the charge.
"It's a matter of great pride for me that the clinic has combined these lofty ambitions with practical, on the ground support and care for people with MS, regardless of stage and type; I've heard at first-hand what a difference this support can make.
"I am confident that the combination of clinical research and practical support delivered by Professor Siddharthan Chandran and his exemplary team will create a definitive step-change for people with MS and associated conditions."
The uni wants to create new pathways for research in the field, 'discovering new information, delivering drug trials, and improving quality of life'.
Professor Chandran, director of the clinic, said: "Our research is shaped by listening to, and involving, individuals who are living with these tough conditions.
"The Anne Rowling Clinic's vision is to offer everyone with MS or other neurodegenerative diseases, such as MND, the opportunity to participate in a suite of clinical studies and trials.
"This incredibly far-sighted and generous donation will unlock the potential of personalised medicine for people with MS in Scotland and further afield."
University vice chancellor Prof Peter Mathieson said: "This inspiring donation will fund a whole new generation of researchers who are focused on discovering and delivering better treatments and therapies for patients."
Edinburgh is an important place for Rowling - she started writing the Harry Potter books while she was an unemployed single parent on benefits, sitting in the city's coffee shops during the day.
Following graduation she suffered from mental health issues, as well as a divorce.
The franchise has now earned her an estimated £700m net worth.
Earlier this year, the author announced four new short stories exploring the history of the wizarding world.
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