The imperial villa Saga-in was built and lived in by Emperor Saga; after his death, it was converted into Daikaku-ji Temple by a son of the Emperor's daughter, Gojaku the Prince, who had entered the priesthood (Imperial Prince Tsunesada who was the deposed Crown Prince of Emperor Ninmyo).
嵯峨天皇が離宮嵯峨院を造営して居住し、その崩御後に外孫の恒寂入道親王（仁明天皇廃太子の恒貞親王）がこれを大覚寺として改めた。