Nephrite is a variety of the calcium, magnesium, and iron-rich amphibole minerals tremolite or actinolite (aggregates of which also make up one form of asbestos).

The name nephrite is derived from the Latin lapis nephriticus, which in turn is derived from the Ancient Greek λίθος νεφριτικός (líthos nephritikós) or νεφρός λίθος (nephrós líthos), which means "kidney stone" and is the Latin and Greek version of the Spanish piedra de ijada (the origin of jade and jadeite).

During Neolithic times, the key known sources of nephrite jade in China for utilitarian and ceremonial jade items were the now depleted deposits in the Ningshao area in the Yangtze River Delta (Liangzhu culture 3400–2250 BC) and in an area of the Liaoning province in Inner Mongolia (Hongshan culture 4700–2200 BC).

There, white and greenish nephrite jade is found in small quarries and as pebbles and boulders in the rivers flowing from the Kuen-Lun mountain range northward into the Takla-Makan desert area.

The maritime road is one of the most extensive sea-based trade networks of a single geological material in the prehistoric world.

It was in existence for at least 3,000 years, where its peak production was from 2000 BCE to 500 CE, older than the Silk Road in mainland Eurasia.

The South Island of New Zealand is Te Wai Pounamu in Māori — 'The [land of] Greenstone Water' — because that is where it occurs.

It has also been used for a range of tools such as adzes and was used to make nails used in construction, as Māori culture had no metalworking before European contact.