According to legend, Yutagawa Onsen's origins date back to a period between 708 and 715 when villagers observed a white heron soothing its wounds in hot water. Another tale attributes its creation to a cow with an eye ailment that opened a hole in the ground, causing holy healing water to flow. During the Edo Period (1603-1868), Yutagawa Onsen became a favored destination for the local lords, the Sakai Family, to seek physical rejuvenation. Commoners also visited the town to celebrate and relax after completing rigorous training at Dewa Sanzan. Situated near Mt. Kinbo, a sacred mountain affiliated with Mt. Haguro in the 13th and 14th centuries, it was not uncommon to encounter Yamabushi trainees in the baths of Yutagawa Onsen during that era.

Yutagawa Onsen is a quaint and traditional hot spring village, characterized by numerous small wooden bathhouses arranged around the Yuzusame-jinja Shrine and Plum Flower Park (blossom season: March/April). The baths are modestly sized, and the rooms exude a tranquil ambiance, making it an ideal destination for families or couples seeking privacy and serenity.