By tradition, the Daito-Ryu was founded in 1100 AD by Minamoto (Genji) Yoshimitsu, sixth generation descendant of the Emperor Seiwa. Yoshimitsu's son Yoshikiyo moved to Koga (present-day Yamanashi Prefecture) and established the Takeda clan; the art was secretly transmitted among family members from generation to generation. In 1574, Kunitsugu Takeda moved to Aizu (Fukushima Prefecture) where the special "oshiki-uchi" (also known as o-dome) techniques were taught exclusively to high ranking samurai of the Aizu-han for the next three hundred years.

Actually, the origin of the Daito-Ryu seem less ancient and more modern. Soemon Takeda (1758-1853) taught a system known as aiki-in-ho-yo, "the aiki system of yin and yang," which he passed on to Tanomo Saigo, chief retainer of the Aizu lord. Saigo also had training in Misoguchi-Ryu swordsmanship and Koshu-Ryu military science.

Certain that Tanomo had been killed in the final battle with the Imperial forces and determined to preserve the honor of the Saigo name, his mother, his wife, his five daughters, and fourteen other members of his family committed ritual suicide. Tanomo's life had been spared; however, following this tragedy, he served as a Shinto priest in various districts and adopted Shiro Shida as his disciple-son. The extremely talented Shiro mastered the oshiki-uchi techniques, later applying them with great effect at the start of Jigoro Kano's newly founded Kodokan school of Judo. Not much later, however, Shiro - probably torn between his debt to his adoptive father Tanomo and his respect for Kano - abandoned the practice of both systems, moved to Nagasaki, and devoted himself to classical archery the rest of his life.

Fortunately, the aging Tanomo had another worthy heir: Sokaku Takeda (1860-1943), Soemon's grandson. (Since Sokaku's father Sokichi concentrated on Sumo wrestling rather than aiki-in-ho-yo, the family tradition temporarily passed to an "outsider.")

Sokaku was no beginner; at an early age he had obtained teaching licenses in Ono-ha Itto-Ryu swordsmanship and Hozion spear-fighting as well as studying with the "swordsman-saint" Kenkichi Sakakibara of the Jikishin-kage-ryu.

When Tanomo transmitted the last of his knowledge to Sokaku in 1898, he told him, "The way of the sword is over; from now on make these marvelous techniques known everywhere." Sokaku modified the oshiki-uchi techniques based on his long years of practical experience; he designated his composite system "Daito-Ryu Aiki-Jutsu," and should rightly be considered its founder.

Now an invincible master of Aiki, Sokaku traveled widely, attracting a large number of desciples; he was reputed to have had around thirty thousand desciples and nearly every budoka of note in that era was his student in one way or the other. One of the most prominent, at least as far as Hapkido is concerned, was Tatujutu Yoshida (Yong-Sool Choi).

Before Sokaku's wife died in 1930, they had seven children including the successor to Daito-Ryu, Tokimune Takeda (1913-1993). Upon Tokimune's death, Soke Dairi Katsuyuki Kondohe was appointed as his technical heir. The next holder of the formal title of headmaster has not yet been decided upon.