Japantown originally formed as a site for boardinghouses for Japanese men, just west of the 1887 "Heinlenville" Chinatown settlement, which was the block bounded by Sixth, Seventh, Taylor, and Jackson Streets.

[2] During World War II, the Japanese American population was forcibly removed from Japantown and unjustly incarcerated in camps.

[2] The upward mobility of the children and grandchildren of the original immigrants to San Jose, along with the expansion and growth of Silicon Valley caused many Japanese-Americans to leave the area for the suburbs,[2] but the culture of this community remains in the businesses and festivals serving locals and tourists.

[7] Japantown is the site of the Japanese American Museum of San Jose, which moved into a new building in 2010;[4] San Jose Taiko, Shuei-do Manju Shop,[2] whose manjū were specifically requested during the 1994 visit of the Emperor of Japan; Nichi Bei Bussan, founded in San Francisco in 1902 by the father of prominent local businessman Dave Tatsuno and relocated to San Jose after Tatsunos were interned, transformed from a general merchant to an Asian goods gift shop;[2][8][9] and a variety of restaurants, professional services, community organizations (for example Yu-Ai Kai Senior Center, and the Japanese American Citizens League) and small retail shops.

[17] In addition there are events that are open to the public at Art Object Gallery and various street venues, including a year-round Certified Farmers Market run by the Japantown Business Association.

[18] On March 22, 2021, the Japantown community formally started citizen foot patrols to increase security and prevent attacks on Asian Americans.