Some of Japan's literary monuments are written during the Nara period including the Kojiki and Nihongi, the first national histories compiled in 712 and 720 respectively; the Man'yoshu (Collection of Ten Thousand Leaves), an anthology of poems; and the Kaifuso (Fond Recollections of Poetry), an anthology written in Chinese by Japanese emperors and princes.

Another major cultural development of the era is the permanent establishment of Buddhism in Japan.

Buddhism had been introduced in the sixth century, but had a mixed reception until the Nara period, when it was heartily embraced by the Emperor Shomu.

Shomu and his Fujiwara consort are fervent Buddhists and actively promote the spread of Buddhism, making it the "guardian of the state" and strengthening Japanese institutions through still further Chinese acculturation.

During Shomu's reign, the Todaiji (Great East Temple) is built and within it is placed the Buddha Dainichi (Great Sun Buddha), a sixteen-meter-high, gilt-bronze statue.

This Buddha is identified with the Sun Goddess, and from this point on a gradual syncretism of Buddism and Shinto ensues.

Shomu declares himself the "Servant of the Three Treasures" of Buddhism: the Buddha, the law or teachings of Buddhism, and the Buddhist community.