Unlike kendo, iaido practice never involves sparring. At times iaidoka will practice complementary kata from kendo or kenjutsu. To perform the kata appropriately, iaidoka likewise learn carriage and development, grip and swing. It is normal for high-ranking kendoka to hold high rank in iaido as well, and vice versa. Iaidoka are often expected to practice kendo to maintain the combative spirit. Regardless of the sword method, creative ability and concentration are required to maintain the feeling of a genuine battle and to keep the kata new. Every kata starts and finishes with the sword sheathed. Iaido is for the most part performed solo as an issue of kata, executing changed strategies against single or various fanciful rivals. Iaido is a reflection of the morals of the classical warrior and to build a spiritually harmonious person possessed of high intellect, sensitivity, and resolute will. Iaido is an intrinsic form of Japanese modern budo.

Iaido encompasses hundreds of styles of swordsmanship, all of which subscribe to non-combative aims and purposes. The term emerged from the general trend to replace the suffix -jutsu ( 術) ('the art of') with -dō ( 道) in Japanese martial arts in order to emphasize the philosophical or spiritual aspects of the practice. The term 'iaido' approximately translates into English as 'the way of mental presence and immediate reaction', and was popularized by Nakayama Hakudo.

The last character, 道, is generally translated into English as the way. The secondary emphasis is on drawing the sword and responding to the sudden attack as quickly as possible (合). Thus the primary emphasis in 'iai' is on the psychological state of being present (居).

The origin of the first two characters, iai ( 居合), is believed to come from saying Tsune ni ite, kyū ni awasu ( 常に居て、急に合わす), which can be roughly translated as 'being constantly (prepared), match/meet (the opposition) immediately'. The term 'iaido' appears in 1932 and consists of the kanji 居 (i), 合 (ai), and 道 (dō). Haruna Matsuo sensei (1925–2002) demonstrating Muso Jikiden Eishin Ryu kata Ukenagashi

Iaido stance raven