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Abstract We report the discovery of MeV–GeV γ-ray emission by the Fermi-LAT positionally coincident with the TeV pulsar wind nebula (PWN) HESS J1554–550 within the host supernova remnant (SNR) G327.1–1.1. The γ-ray emission is point-like and faint but significant (>4σ) in the 300 MeV–2 TeV energy range. We report here the Fermi-LAT analysis of the observed γ-ray emission followed by a detailed multiwavelength investigation to understand the nature of the emission. The central pulsar powering the PWN within G327.1–1.1 has not been detected in any wave band; however, it is likely embedded within the X-ray nebula, which is displaced from the center of the radio nebula. The γ-ray emission is faint and therefore a pulsation search to determine if the pulsar may be contributing is not feasible. Prior detailed multiwavelength reports revealed an SNR system that is old, τ ∼ 18,000 yr, where the interaction of the reverse shock with the PWN is underway or has recently occurred. We find that the γ-ray emission agrees remarkably well with a detailed broadband model constructed in a prior report based on independent hydrodynamical and semianalytic simulations of an evolved PWN. We further investigate the physical implications of the model for the PWN evolutionary stage incorporating the new Fermi-LAT data and attempt to model the distinct particle components based on a spatial separation analysis of the displaced PWN counterparts.