Officially named Kobo san Kairyuji, the temple was founded in 806 by the high priest Kobo Daishi. The Taishido hall is set beneath a gigantic rock at the spot where Kobo Daishi is said to have performed practices during his stay. A temple was built on the site to commemorate the dead from the Genpei War naval battle at nearby Mizushima in 1183, and in 1625 Mizuno Katsunari, the lord of Fukuyama Castle, rebuilt it as a temple for prayer and named it Kairyuji. Taishido is the inner and head temple of the 88-temple Pilgrimage of Konoshima, where those who have completed the circuit of sacred sites visit to end their journey.