Kurama temple was said to have been founded in the 8th century by a disciple of the Chinese Buddhist monk Jianzhen, who dreamed of a spiritual power within Mount Kurama and constructed the temple at its base to harness this power. From the 12th century until 1949 it belonged to the Tendai sect; in the postwar era, abbot Kouun Shigaraki founded his own unaffiliated, esoteric religion and split the temple away from Buddhism.

Its original objects of worship represent Bishamonten, protector of the north, and the Thousand-Armed Kannon. A third object, the Defender Lord, was added later. Together, they form the 'Spiritual Kings of the World.'

Though secluded, the temple is popular with locals and is accessible by its own cable car line, the Kurama-dera Cable. It is believed that tengu and other mountain spirits live in this area.