It is said that Tadaji Temple was founded by order of Empress Koken (718–770) in 749 by a prominent monk called Shogyo. The name Shogyo is also recorded in Todaiji Sangocho, a book recording the history of the famous Todaiji Temple in Nara. This reflects the strong connection that existed between Obama and the ancient capital in Nara. Tadaji Temple belongs to the Shingon school, but in the past, it was involved in the syncretic fusion of Shinto and Buddhism once practiced in Japan. This religious fusion was especially common on sacred mountains where deities were thought to reside, such as Mt. Tadagatake where Tadaji Temple is located. Tadaji Temple and the shrine it was related to, Tada Jinja Shrine, may have been the center of syncretic worship in this region before the founding of Wakasahiko Jinja Shrine.
The main hall of Tadaji Temple was reconstructed in the Edo period (1603–1868). Inside is the principal object of worship, a wooden standing statue of Yakushi Buddha, the deity of medicine and healing. The statue is flanked by two statues of Kannon, the bodhisattva of compassion, one of which is depicted in an eleven-headed form. The three figures are considered the oldest wooden statues in the Wakasa region, carved between the eighth and tenth centuries. This timeframe suggests that Buddhism was transmitted to Obama relatively early on, not long after it began to spread from the ancient capitals of Nara and Kyoto. All three statues are nationally designated Important Cultural Properties.
