Sanbō Kyōdan was founded by Hakuun Yasutani in 1954, when he "finally gave up his membership in the Sōtō School and professed himself to be connected directly to Dōgen Zenji.

[2] Among Yamada Koun's friends and associates were Soen Nakagawa,[3] a strong supporter of Japanese imperialism,[4] and Yasutani Roshi's own position has been the subject of arguments.

[8] Kapleau studied under Harada Sōgaku in Obama and Yasutani Haku'un in greater Tokyo in the 1950s and 1960s, but never received formal dharma transmission, and started his own lineage.

[10][11] The stress on kenshō as means of authority, coupled to the primacy of maintaining the correct dharma transmission, led to institutional problems when Yasutani's heir Yamada Koun died,[7] in the view of some disaffected former members.

[12] While a handful of Western teachers authorized by Sanbo-Zen left the organization, some 40 or so remain within it, and the institution itself has evolved and shows signs of growing strength and resilience.

The direct lineage of the “Three Clouds” (Harada, Yasutani and Yamada) maintains a strong core and trunk in today's Sanbo-Zen.