According to Buddhist traditions, circa 500 BC Prince Gautama Siddhartha, wandering as an ascetic, reached the sylvan banks of the Phalgu, near the city of Gaya. There he sat in meditation under a bodhi tree (Ficus religiosa). After three days and three nights of meditation, Siddhartha claimed to have attained enlightenment and insight, and the answers that he had sought. He then spent seven weeks at seven different spots in the vicinity meditating and considering his experience. After seven weeks, he travelled to Sarnath, where he began teaching Buddhism.

Disciples of Gautama Siddhartha began to visit the place during the full moon in the month of Vaisakh (April–May), as per the Hindu calendar. Over time, the place became known as Bodh Gaya, the day of enlightenment as Buddha Purnima, and the tree as the Bodhi Tree.

The history of Bodh Gaya is documented by many inscriptions and pilgrimage accounts. Foremost among these are the accounts of the Chinese pilgrims Faxian in the 5th century and Xuanzang in the 7th century. The area was at the heart of a Buddhist civilization for centuries, until it was conquered by Turkic armies in the 13th century. The place-name, Bodh Gaya, did not come into use until the 18th century CE. Historically, it was known as Uruvela, Sambodhi, Vajrasana or Mahabodhi. The main monastery of Bodh Gaya used to be called the Bodhimanda-vihāra (Pali). Now it is called the Mahabodhi Temple.

Five bombs were detonated in Mahabodhi temple premises on July 7, 2013. 4 bombs were also detonated in town while three were defused.

• Bodhgaya is about 12 km from Gaya City.The NH83 Highway connects Gaya and Bodhgaya.
• The State Tourism Department provides travel facility from Patna to Bodh Gaya.
• Regular train and bus service are available from Kolkata which is an overnight journey
• Bodh Gaya to Varanasi, and further to Kathmandu Bus service