The word "paper" is etymologically derived from papyros, Ancient Greek for the Cyperus papyrusplant. Papyrus is a thick, paper-like material produced from the pith of the Cyperus papyrus plant which was used in ancient Egypt and other Mediterranean cultures for writing before the introduction of paper into the Middle East and Europe. Although paper is etymologically derived from papyrus, the two are produced very differently and the development of modern paper is separate from the development of papyrus. Papyrus is a "lamination of natural plants, while paper is manufactured from fibres whose properties have been changed by maceration or disintegration.

Paper, and the pulp papermaking process, was said to be developed in China during the early 2nd century AD by the Han court eunuch Cai Lun, although the earliest archaeological fragments of paper derive from the 2nd century BC in China.

The oldest known archaeological fragments of the immediate precursor to modern paper date to 2nd century BC China. Papermaking is considered one of the Four Great Inventions of China, and the pulp papermaking process is ascribed to Cai Lun, a 2nd century AD Han court eunuch. Paper spread from China through the Islamic world to medieval Europe in the 13th century, where the first water-powered paper mills were built. In the 19th century, industrial manufacture greatly lowered its cost, enabling mass exchange of information and contributing to significant cultural shifts. In 1844, Canadian inventor Charles Fenerty and German F.G. Keller independently developed processes for pulping wood fibers which is the basic for today’s paper.

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