The establishment of what is practiced today as “Iaido” is widely credited to Hayashizaki Jinsuke Shigenobu (1542-1621). From this point, the continuing succession of his followers gave rise to the many different schools of Iaido. Although Mugai-ryu was founded by Tsuji Gettan Sukemochi (1649-1727) as a school of Kenjutsu, it is known today as a school of Iaido.  The relationship between Mugai-ryu Kenjutsu and Iai began when Tsuji Gettan learnt Jikyo-ryu Iai from its founder, Taga Jikyoken Morimasa, and had his pupils do the same. However, it is usually said that Jikyo-ryu was not adopted by Mugai-ryu Kenjutsu until the late 18th Century.

The founder of Mugai ryu, Tsuji Gettan was born in 1649, in the Miya-mura-aza village area of Masugi, Kōga-gun district of Ōmi (modern day Shiga Prefecture.) At age 13, he left the village for Kyoto to study Yamaguchi-ryū swordsmanship under Yamaguchi Bokushinsai Morimasa, and at the age of 26, after receiving Menkyo Kaiden, a teaching license, made straight for Edo (modern day Tokyo) to further hone his skills.

He then opened and taught at a Yamaguchi-ryu Dojo in Edo  Koishikawa. With strong thoughts of mastering the “way”, He soon went to the Kyūkōji temple in Azabu Sakurada-cho in order to study Zen and Classical Chinese literature under Zen bishop Sekitan Ryouzen. In 1680, just before Sekitan zen bishop's passing on 23 June 1680, Tsuji Gettan received from him an old-style poem taken from the Buddhist scriptures and founded Mugai-ryu Hyoho (=Swordsmanship) at the age of 32. He also authored Kenpo Ketsu, 10 rules of Swordsmanship on 15 May 1680. This teaching is based on the essence of Zen theory, or an old Chinese meaning for Ying-Yang principle. The new style of swordsmanship quickly made him famous throughout Edo (=Tokyo).

Tsuji Gettan was finally spiritually awakened at the age of 45.  As the name of Tsuji Gettan became known far and wide, his pupils grew in number. Of these students, Ogasawara Nagashige, Sakai Tadataka and Yamanouchi Toyomasa became feudal lords, and entrusted Tsuji Gettan with the care of thousands of students.

Tsuji Gettan Sukemochi was unmarried, and devoted his whole life to the pursuit of Kenjutsu and Zen until falling ill at the age of 79, and finally passing away on June the 23rd, 1727. He was buried in the Nyorai-ji Temple, Shiba-Takanawa (modern day Shinagawa.)

     Takahashi Kyutaro Koun, born in July of 1879, learned Mugai-ryu Hyohou, Jikyo-ryu Iai and Tsudaichiden-ryu Kenjutsu from his father, the famous Kenjutsu instructor Takahashi Takenari Tetsuo. In 1887, he was employed as the Metropolitan Police Force’s dedicated Kenjutsu master. Takahashi Kyutaro Koun, Tosa Mugai-Ryu’s Kawsaki Zenzaburo  and Takano Sasaburo of Nakanishi-ha Itto-ryu were then collectively known as the Metropolitan Police Force’s “Three Prodigy Sons” of Kenjutsu.

In 1903, Takahashi Kyutaro became the first ever Kenjutsu instructor of the Kobe High Commercial School (Modern day Kobe University) while also holding the position of chief instructor at the Hyogo Butokukai. However, after he met Nakagawa Shinichi, a former student of Kobe Daiichi Junior High School and Hyogo Prefectural Kobe High School, Nakagawa enrolled in Kobe High Commercial School and took over Takahashi’s duties as full-time instructor.

   Nakagawa Shinichi Shiryu then inherited the Kata of “Mugai-ryu Hyoho(Kenjutsu)” and “Mugai-ryu Iai”  from Takahashi Kyutaro, and compiled the two to establish a new form, giving it the name “Mugai Shinden Mugai-ryu Iai Hyodo.”

Without appointing a direct successor, Nakagawa Shinichi Shiryu passed away on the 2nd of January 1981 at the age of 86.

 He was then jointly succeeded by six individuals who received Menkyo Kaiden Scrolls (scrolls containing all the hidden mysteries of Mugai-ryu) from him. Due to the passing of the other five individuals entrusted with the Menkyo Kaiden, Konishi Misakazu Ryuoh is currently the legitimiate 16th soke of Mugai Shinden Mugairyu Iaihyodo.