The city of Nara holds a special place in Japanese history as the country's first permanent capital. Nara received this status in 710 AD, marking the start of the namesake Nara period (710–794 AD)—a time of centralized state formation and cultural flourishing. Before this, the capital often moved after the death of an emperor, so establishing a permanent center of power was a major step in the country's development. In 710, by decree of Empress Gemmei, the capital was moved to Heijo-kyo, known today as Nara.
The choice of this location was driven by the desire to create a strong political center modeled after China's Tang Dynasty. The city was planned as a regular square with a clear street grid, characteristic of the Chinese capital, Chang'an. It was during the Nara period that the country officially adopted the name "Nippon" (Japan). Several factors drove Nara's rise as a center of the state. First was the political will of the Imperial Court aimed at centralizing power. Second, the city became a major religious center. Emperor Shomu declared Buddhism the state religion, leading to the construction of magnificent temple complexes like Todai-ji. Third, Nara became the eastern terminus of the Silk Road, facilitating trade and cultural exchange with mainland Asia.
The Nara period is characterized by the active assimilation of Chinese and Korean cultures. This era saw the creation of Japan's first historical chronicles—the "Kojiki" (712 AD) and "Nihon Shoki" (720 AD). The city flourished as a craft and trade center, producing luxury goods, weapons, and agricultural tools. Buddhism had a massive influence on art and architecture, and Nara itself became Japan's first "international" city, receiving goods and artworks from India, Persia, and other distant lands.