The city was devastated by a series of wars in the 14th century, but after the construction of Ishiyama Honganji Temple in 1496, the area developed as a Jinai-cho (temple town). It was during this period that the area first became known as Osaka.

Although the temple was destroyed in a decade-long conflict with Nobunaga Oda, Hideyoshi Toyotomi became interested in the temple site and began construction of Osaka Castle in 1583. While the castle was being built, a castle town developed. This grew to become the origin of today's Osaka, as merchants moved in from Sakai and Fushimi, developing an active commercial district and transforming Osaka into an economic and political center. Osaka Castle, however, was surrendered, amid the two battles waged in 1614 and 1615, and the area went into decline after the death of Hideyoshi.

Reconstruction of the urban districts and excavation of canals were later undertaken under the direction of the Shogunate in Edo (the present Tokyo), leading to an age of economic prosperity that surpassed all previous growth. The expansion of water transport greatly contributed to the city's economic health. Osaka thrived as a financial and commercial center throughout the Edo Period (1603-1867), an era that also witnessed a growth in the performing arts and culture.

Although the intense reform that began with the final days of the Tokugawa regime and extended until the Meiji Period in the late 19th century caused a major setback to the economy of Osaka, the city made great progress as a modern center of commerce and industry thanks to the efforts of many eminent pioneers. The City of Osaka was established as a modern municipality in 1889, and urban improvements were undertaken, such as water supply and drainage systems, harbor construction, a streetcar transit system, and the like. Throughout the early 20th century, steady progress was made in city planning for streets, subways, parks and land use. The City of Osaka continued to play a pioneering role for Japanese cities through its construction of a modern infrastructure and establishment of social welfare policies.

Nevertheless, the city experienced hardship resulting from intense changes in social and economic conditions, typhoons and other natural disasters, damage from World War II, and postwar chaos. Despite these difficulties, however, the city proudly and energetically entered its second century of accomplishment after celebrating the centennial of its municipalization in 1989.