Daigo-ji is spread over a wide area that includes the top of Mt. Kasatori. The part of the temple at the top of the mountain is known as Upper (Kami) Daigo, while the part at the base of the mountain is called Lower (Shimo) Daigo. The priest Shoho Rigen founded Daigo-ji in 874, early in the Heian Period. A story about the temple’s foundation is included in Daigoji Engi, a document on the history of Daigo-ji, written towards the end of the Heian Period.