It opened in 1961 and was in continuous operation until its permanent closure in 2006 as a result of falling attendance due to the overwhelming popularity of newer amusement parks in Japan.

Still wanting to open a Disney-like park, Matsuo decided to move forward with the plans, whilst removing any Disney intellectual properties.

The entrance to the park was designed to look almost identical to Disneyland, including its own versions of the Train Depot, Main Street, U.S.A., and the familiar Sleeping Beauty Castle at the hub.

The park was initially popular, especially for Japanese citizens, due to its similarities to Disneyland, which did not have a location in Japan at the time.

Not long after, Nara Dreamland's number of visitors slowly began to decrease, as more people became interested in going to Tokyo Disneyland due to the latter having bigger park size, more rides, newer amenities, and better reputation compared to the former.

[5] On October 14, 2016, an urban explorer visited Nara Dreamland and reported seeing demolition vehicles tearing down the Main Street area.

[6][7] It was later confirmed online by regular visitors that the park's demolition process was officially underway as of October 10, 2016 and that it was due to take about 14 months.

[10][better source needed] In 2018, the YouTube series Defunctland released a video covering the history of Nara Dreamland.