The origin of modem day Karate can be traced back many centuries to China. Based on the movements of animals many forms of Kung fu, Shi-fu, and Kenpo flourished throughout China. Both China and Japan influenced Okinawa, in particular. Over the century's, masters travelled to China to further their Martial arts knowledge. Originally called To-de, (Tang hand), the Okinawans changed the name to Okinawan Kenpo of To-de and then again to Okinawa-Te, (hand of Okinawa). During this period, the Okinawans had forged a formidable style of unarmed combat. The three major towns of Shuri, Tomari, and Naha are where many fighting styles flourished. The main styles were simply named after these towns, i.e. Naha-te, Tomari-te, and Shuri-te. Naha-te and Tomari-te became Shorei-Ryu and Shuri-te became Shorin-Ryu. Some styles used hard, fast, and agile movements while others used soft applications and semi-circular movements derived from southern Shaolin Kung-fu styles. Many well-known masters trained in Okinawa under Higashiona and Itosu. Some of these included Kenwa Mabuni, Gitchin Funakoshi, Choshin Chibana, Chotoku Kyan, Kentsu Yabu, Moden Yabiku, Chojun Miyagi, Kangen Toyama, Tatsuo Shimabaku, Juhatsu Kyoda, and Seiko Higa.

Okinawan masters eventually formed a Shobukai, (council of martial arts), and chose the name Kara-tejutsu, (Chinese hand art), as an annex name for their various fighting systems. This was in recognition of the role China had played in the development and growth of the Okinawan fighting arts. Gitchin Funakoshi, (a schoolteacher as well as a Karate master) was chosen to represent the Shobukai. In 1902, Funakoshi demonstrated Karate-jutsu to the commissioner of Okinawan schools, which led to its inclusion in the school curriculum in 1903. In 1906, Funakoshi gave the first open demonstration. In 1912, he was chosen by the Okinawan Shobukai to give a Karate-jutsu demonstration the Japanese navy. He then went on to give a series of demonstrations throughout Okinawa. In 1917, he visited Japan to give a demonstration at the Butokuden. Later he returned to Okinawa and gave up teaching to promote Karate-jutsu full time.

In 1922, upon invitation from the crown prince Funakoshi was selected to demonstrate Karate-jutsu to the Japanese public. It was not long before Karate-jutsu began to spread throughout Japan. Funakoshi, along with Mabuni, Miyagi, and Motobu were the masters accredited with the proliferation of Karate-jutsu.

Funakoshi however is considered the father of modem Karate through his many innovative changes, which helped Karate-jutsu become Japanese. Between 1933 and 1936 Funakoshi took on the mantle of leader of the Japanese Karate movement and changed the concept of 'Karate' meaning China hand to that of empty hand. He later changed the word jutsu in favor of 'Do'. Thus 'Karate-do was bom with the literal translation meaning 'the way of the empty hand'. These changes caused conflict amongst the Okinawans but Funakoshi clarified the situation by declaring that the ideogram Kara (empty) was based on unselfishness, thus the emptiness referred to the state of rendering oneself empty or without ego. He stressed the point that Karate-do was taught as an exercise for the mind and body to build and polish ones character. Funakoshi soon established a training hall and called it Shotokan, Shoto being Funakoshi's pen name, Kan meaning hall or training area. A syllabus was formed based on that of Kano's Judo syllabus. Following the end of World War II Karate-do quickly spread to America then to Europe and eventually the rest of the world.