The temple was founded in 1259 by Ninshō, a monk who established Japan's first free medical clinic and welfare facilities here, treating leprosy patients and the poor when no one else would help them.

At its peak, Gokuraku-ji had 49 sub-temples spanning the entire valley. Today's elementary school playground sits where the main temple halls once stood before repeated fires reduced it to its current modest size.

Gokuraku-ji Station became famous as a filming location for TV dramas, causing such crowds that reviewers note the station area is now busier than the peaceful temple itself, creating an ironic contrast.

The temple's name means 'Pure Land Paradise,' chosen because the area was called 'Hell Valley'—a place where corpses were abandoned and the destitute gathered, which the temple transformed into a sanctuary.