Sanrio Puroland was a "bald attempt" to challenge the Walt Disney company and its theme parks. During its conceptual phase, Sanrio Puroland was known by many names - first as Sanrio Communication World, as well as Sanrio Heart Park and Sanrio Piero Land. The original theme was going to be "communication", as opposed to Sanrio's existing works, including its characters.

In 1985, Sanrio initiated a project called "Sanrio Science Culture Communication Center" (SSCCC) with the goal of constructing a theme park that would open in 1990 to coincide with Sanrio's 30th anniversary. To build knowledge on theme park operation, management, and interior design, Sanrio commissioned Landmark Entertainment Group to design two facilities - the Ginza Sanrio Gift Gate (a concept shop that was located at the same spot as the current Ginza flagship store of Tiffany and Co.) and Sanrio Phantasien (an indoor minipark that was located inside what is now the LaLaport TOKYO-BAY retail complex). The initial design phase began in 1987, and Sanrio Puroland broke ground on November 16, 1988. It took a team of 2,500 workers approximately two years to complete, at a cost of around JPY 60-70 million.

Sanrio Puroland opened on December 7, 1990, and would operate at a loss for the first few years of operation, due to factors such as the aftereffects of the Japanese asset price bubble burst and complaints from city locals.

Sanrio Puroland was temporarily closed from February 22 to July 20, 2020, during the early stages of the COVID-19 pandemic.