The Nyaya of logic is said to have been founded by a sage named Gautama. He is also known as Gautama, Aksapada and Dirghatapas. The names Gotama and Gautama points to the family to which he belonged while the names Aksapada and Dirghatapas refer respectively to his meditative habit and practice of long penance. The people of Mithila (modern Darbhanga in North Bihar) ascribe the foundation of Nyāya philosophy to Gautama, husband of Ahalya, and point out as the place of his birth a village named Gautamasthana where a fair is held every year on the 9th day of the lunar month of Chaitra (March–April). It is situated 28 miles north-east of Darbhanga.
The historical development of Nyāya school is unclear, although Nasadiya hymns of Book 10 Chapter 129 of Rigveda recite its spiritual questions in logical propositions. In early centuries BCE, states Clooney, the early Nyāya scholars began compiling the science of rational, coherent inquiry and pursuit of knowledge. By the 2nd century CE, Aksapada Gautama had composed Nyāya Sūtras, a foundational text for Nyāya school, that primarily discusses logic, methodology and epistemology. The Nyāya scholars that followed refined it, expanded it, and applied it to spiritual questions. While the early Nyaya scholars published little to no analysis on whether supernatural power or God exists, they did apply their insights into reason and reliable means to knowledge to the questions of nature of existence, spirituality, happiness and moksha. Later Nyāya scholars, such as Udayana, examined various arguments on theism and attempted to prove existence of God. Other Nyāya scholars offered arguments to disprove the existence of God.
The most important contribution made by the Nyāya school to Hindu thought has been its treatises on epistemology and system of logic that, subsequently, has been adopted by the majority of the other Indian schools.