Kyo Nui likely dates back to 794 when the new capital of Heian Kyo (Kyoto) was established and a weaving department filled with embroiderers was set up in the imperial court.
Until Miyazaki Yuzensai perfected the yuzen dyeing technique in the middle of the Edo period (1600-1868), embroidery was an important method of decorating fabric along with "fawn spot" tie-dyeing and the application of gold and silver leaf. Embroidery had a particularly important part to play within the new, richly embellished kanbun style of kimono cloth favored by wealthy merchants. Kakefusa, a cloth of Kofukuin temple in Nara Prefecture, is a good example of the kind of high-quality embroidery from the middle of the 18th century.

Reflecting the splendor and refined taste of the Heian period and using well established traditional techniques, Kyo Nui uses gold, silver and silk threads, usually either on a silk or linen base.