The use of wrapping paper is first documented in ancient China, where paper was invented in 2nd century BC. In the Southern Song dynasty, monetary gifts were wrapped with paper, forming an envelope known as a chih pao. The wrapped gifts were distributed by the Chinese court to government officials. In the Chinese textThien Kung Khai Wu, Sung Ying-Hsing states that the coarsest wrapping paper is manufactured with rice straws and bamboo fiber

Although the Hall brothers Rollie and Joyce Hall, founders of Hallmark Cards, did not invent gift wrapping, their innovations led to the development of modern gift wrapping. They helped to popularize the idea of decorative gift wrapping in the 20th century, and according to Joyce Hall, "the decorative gift-wrapping business was born the day Rollie placed those French envelope linings on top of that showcase.