Yagyu Sekishusai was already a renowned bugeisha (martial artist) when – via the introduction of the skilled spear-wielding monk Hōzōin In’ei – he was introduced to one of the legends of Japanese swordsmanship – Kamiizumi no kami Nobutsuna. Following a legendary duel in which Sekishusai lost to one of Kamiizumi’s students armed with a fukuro-shinai, Sekishusai himself became a follower of Kamiizumi, eventually inheriting the system from him. Sekishusai’s son Munenori went on to become an official sword instructor for the Tokugawa Bakufu (shogunate) and taught three successive Shogun’s. In his lifetime his stipend and position considerably rose, assuring both his families success and their notoriety.
The Yagyu family would continue to teach swordsmanship to the Tokugawa and their officials right up until the end of the feudal period#, and members of the family continue to practise and pass on the tradition to this very day.
The Yagyu family do not own the current village, of-course, but there are plenty of things for the discerning kendo tourist to see.
* Hotokuji (芳徳寺): the family temple was built in 1638 and houses statues of Sekishusai, Munenori, and also Takuan Soho. Inside there is a small museum and you can look Yagyu related historical items (all information in Japanese though). Around the back is the family graveyard: an amazing place to come if you are interested in Japanese swordsmanship.
* Itto seki (一刀石): This is a giant rock that his been split in two.. allegedly by the sword work of Sekishusai. He had been walking through the woods when he thought he was being attacked by Tengu. He dextrously turned around and cut down through what he thought was the enemy. Instead, it was the rock. Its hard to imagine how big the rock is until you actually go there!
* Former Yagyu-han chief retainers mansion (旧柳生藩家老屋敷): This is a museum with some Yagyu related articles. You can also buy tenugui here!
* Yagyu Mazakizaka Kenzen Dojo (柳生正木坂剣禅道場): A modern kendo dojo with the frontage of an old temple from Kyoto. It has nothing to do with the Yagyu family but sits just outside Hotokuji and provides and amazing place to practise budo. You can hire this place out as for keiko and gasshuku.
There are more things to see in the town, but not that much. The location is pretty remote, but it IS well worth visiting it as it is a sort of pilgrimage site. If you are going by bus you have to be very careful to time it just right — leave Nara city as early as you can, and come back in the afternoon. Its too far to take a taxi (you have been warned!).
I’ve been there only once, but I have promised myself to go down there and visit it again at least once a year. If you live in Japan then I highly recommend that you go at least once. If you are a visitor to the area that is serious about kendo and swordsmanship well, its a worth the effort to make the visit. If you don’t you will probably regret it.