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The original Banana Republic was founded by Mel and Patricia Ziegler in 1978. It was a two-store safari and travel-themed clothing company. The majority of sales came from its eccentric, hand illustrated catalog, which presented high-end and unique items with chatty, usually fictional back stories from exotic locations, as well as more pedestrian high-volume products deliberately spiced up with a similar treatment. As Banana Republic expanded its retail operation, it became known for the themed decoration in its stores, often featuring authentic elements, such as real Jeeps and foliage, as well as atmospheric elements, such as fog and steam.

The Gap, Inc. acquired Banana Republic in 1983, eventually re-branding it as a mainstream luxury clothing retailer. The eccentric tourist-oriented items were phased out and were replaced with more luxurious items for which the brand is currently known. To set itself apart from Gap as a more upmarket brand, Banana Republic occasionally buys and refurbishes historic buildings for its retail locations.