Its development goals include low resource usage, ease of use, and extensibility.

Prosody development was started by Matthew Wild in August 2008[3] and its first release, 0.1.0, was made in December 2008.

[5] The XMPP Standards Foundation runs Prosody on xmpp.org, and uses the chatroom feature for meetings for various XSF teams.

Collabora runs Prosody on proxies.telepathy.im to provide file transfer proxy lookup for Telepathy (and therefore Empathy).

Peter Saint-Andre[6] (the executive director of the XMPP Standards Foundation) has run Prosody on http://stpeter.im.