The name of Daruma Sect derives from the legend, which appears in "Nihonshoki" (Chronicles of Japan) and "Genko shakusho (History of Buddhism of the Genko era), that Prince Shotoku met with the incarnation of Daruma Daishi.
達磨宗の名は『日本書紀』や『元亨釈書』にみられる聖徳太子が達磨大師の化身に出会ったとする伝説に因んでいるという。