Gifu lanterns are said to have first been made in the mid-18th century in what is now Gifu City, as raw materials such as washi paper and bamboo were available nearby. By the early 19th century, the city had become a major producer of bon lanterns. During Obon, the spirits of deceased ancestors are said to visit the present world, and the bon lanterns are used to light their path.

Gifu lanterns are valued for their elegant shape, clean patterns, and delicate construction. Though the most typical Gifu lantern is egg-shaped and hung from above, there are also three-legged standing versions. Isamu Noguchi made Gifu lanterns famous in the 1950s when he used them as the basis for a contemporary lighting fixture design called the Akari.