Odissi was first encountered outside the temple in the early part of the 16th century. This dance tradition was kept alive by the devadasis. Those who were attached to the Jagannath Temple were all Vaishnavitcs and those at Bhubaneswar were attached to Shaivite temples. Before the introduction of the Gitagovinda in temples, the devadasi used to dance to the recitation of hymns and bols of talas. But after Gitagovinda became part and parcel of the rituals, tile devadasis performed abhinaya with different bhavas and rasas. The dance remained an oral tradition through the beginning of the 20th century, in possession of semi-literates who were not aware of the existing Sanskrit texts on dance. Consequently, the movement patterns, body positions, and hand gestures existed in diluted, even debilitated, form without the technical terminology that structures a dance format.

The dances were passed down, in the case of Maharis (female temple dancers), from mother to adopted daughter and, in the case of Gotipuas, from teacher to the dedicated boys. Lack of patronage made it difficult to continue the Gotipua dance tradition in the temples of Orissa, and financial duress drove the young Gotipuas to jatras or roving theatre groups, while the Maharis (temple dancers) continued the tradition within the temples. They earned their living dancing interludes to dramatic acts; thus Odissi had begun its move from temple to stage. Even the sculptures in the temples of Brahmeswara, Sun Temple at Konark, depict the Odissi dance form. In 1950`s with Abhinaya Chandrikas perseverance, the dance form could be revived back to its original glory and fame.

Over the centuries, three schools of Odissi dance developed: Mahari, Nartaki, and Gotipau. The Mahari tradition is the devadasi tradition; this is the use of women who are attached to deities in the temple. The Nartaki tradition is the school of Odissi dance, which developed in the royal courts. However, after the 17th century, Odissi declined to great levels, as at that time dancers were considered to be shameless. As a result of this there was no one ready to learn dance. Dancing girls were considered to be little more than prostitutes, and the "Anti-Nautch" movement of the British brought Odissi dance to near extinction.

Independence brought a major change in official attitudes toward Indian Dance. Like the other classical arts, dance was seen as a way to define India`s national identity. Governmental and non-governmental patronage increased. The few remaining Odissi dancers were given employment, and a massive job of reconstructing the Odissi dance began. There were a number of people who were responsible for the reconstruction and popularization of Odissi dance. The revival of Odissi can be credited to Kalicharan Pattanayaka who presented Odissi artists on the stage and encouraged others to follow suit. In the 1950s, Abhinaya Chandrika revitalized the entire dance form, with the help of sculpted dance poses found in temples.

The current form of Odissi is the product of a 20th century revival. Dedicated scholars and dance enthusiasts carefully researched manuscripts and studied the sculpture, painting and poetry of the region. They also met and observed the performances of the few existing performers, in order to revive and restructure Odissi as a unique classical dance style adapted to the requirements of formal stage presentation. Over the years Odissi has become one of the most popular classical dance styles.