

The founding date of the movement is considered to be 1861 when Shiv Dayal Singh began publicly to give discourses. The teachings seem to be related to forms of 18th- and 19th-century esoteric mysticism that were circulating at the time in northern India. The movement does not promote celibacy, however, and most of the masters in its various lineages have been married. He was influenced by the teachings of Tulsi Sahib of Hathras, who taught surat shabd yoga (which is defined by Radhasoami teachers as “union of the soul with the divine, inner sound”) guru bhakti (“devotion to the master”) and high moral living, including a strict lacto-vegetarian diet. The Radhasoami tradition can be traced back to the spiritual master Shiv Dayal Singh (honorifically titled Soamiji Maharaj) who was born on August 24, 1818, in the north Indian city of Agra. His discourses attracted followers and thus the Radhasoami movement was founded when Swami ji gave initiation to Baba Jaimal Singh ji who practised Surat shabad yoga on the bank of river Beas and the Radha soami Satsang Beas (RSSB) or Dera Beas was Created. After completing his education, Singh gained employment as a Persian language translator, left that role and spent increasing amount of his time to religious pursuits. His parents were followers of Guru Nanak of Sikhism and a local spiritual guru Tulsi Saheb. Radhasoami movement was founded by Shiv Dayal Singh in Agra.

In some subtraditions of Radhasoami, states Lucy DuPertuis, the guru's charisma is considered as the "formless absolute", being in his presence is equivalent to experiencing the incarnation of the Satguru, the guru is identified as the Radhasoami. This has led to the fellowship being commonly called Radha Soami. The gurus and the tradition that followed him used the term Radhasoami during the initiation rites, meditation practices and as mutual greeting.

The writings of Swami Dayal use the term Sat Nam, rather than Radhasoami. It is a referent to the consciousness in a person and the cosmic energy source, states Juergensmeyer. According to Saligram, quotes Juergensmeyer, these terms are symbolic and mean "master of energy", derived from the Vaishnava understanding of "Radha as the power of energy of God" ( Shakti). According to Mark Juergensmeyer, the term Radhasoami literally refers to Radha as The Soul and Soami ( swami, lord).
