Founded in 1675 (Enpō 3), Tsukino Katsura was originally established in a location facing the
"Toba Kaido" road, which extended straight south from the Rashōmon gate during the construction of Heian-kyo, and had a sake brewery and main house under two business names
"Masuda Tokubee" for sake and "Komeya Yahē" for rice.

In the late Edo period, the brewery began to serve as a lodging house for court nobles traveling from Kyoto to the western part of the country. The name "Tsukino Katsura" comes from a poem written by a nobleman, Ayanokoji Arinaga, with whom the brewery had a connection.

Although the brewery suffered damage in the Battle of
Toba-Fushimi in 1868 (Keiō 4), it was re-established at the present location. Over the years, the brewery has been loved by many famous writers and calligraphers known as "sake devotees," and each generation of owners has sharpened their senses towards artistic and cultural matters through their interaction with these figures.
The brewery still has a large number of sake dishes, ancient documents, ukiyo-e prints,
and records of these interactions.

In 1964 (Showa 39), the 13th generation invented Japan's first "sparkling nigori-zake" (unfiltered sparkling sake). The following year, they began storing "junmai daiginjō koshu" (matured pure rice sake) in porcelain jars for long-term aging, establishing a new genre and continuing to protect tradition as the "pioneers" of both styles. In recent years, the brewery has also embarked on initiatives such as reviving and cultivating locally grown sake rice and developing low-alcohol sake, pursuing a taste that combines traditional sake brewing with modern sensibilities.