Kyoto Animation was co-founded in 1985 by married couple Yoko and Hideaki Hatta; it became a limited company in 1985 and a corporation in 1999.

Some winning submissions are published under the company's KA Esuma Bunko imprint, and have a chance of being later adapted as anime.

[9] Love, Chunibyo & Other Delusions, Free!, Beyond the Boundary and Myriad Colors Phantom World were based on novels that received an honorable mention in this competition.

[12] Kyoto Animation has become recognized for its high production values and "sensitivity to the wonders and quandaries of ordinary life".

[17] In April 2020, the company announced that it would put its work on hiatus for one month due to the COVID-19 pandemic, later extending the period to the end of May.

A number of titles that are produced by Kyoto Animation are distributed in North America such as Crunchyroll LLC (Funimation), ADV Films, Sentai Filmworks, Central Park Media, Netflix and Bandai Entertainment.