The focus of this thesis investigates the development and modernization of one of Japan s oldest moral systems known as bushido (the way of the warrior) and its incorporation into the Japanese school system during the modern prewar period. Also discussed is the transformation and westernization of modern budo (martial arts) in Japan as it was developed to facilitate the dissemination of bushido education in schools. The findings of this research will uncover the internal struggles between liberals in favor of modern western-style educational methodologies and conservative nationalist seeking to impose these traditional values onto the youth of Japan. Bushido and budo, following the exploits of the Japanese military in the late 1800 s, would gain the overwhelming support of the Japanese people and in turn the conservative nationalists. The final inclusion of bushido as the premise for moral education and budo as its primary mode of practical application would lead to an ever intensifying indoctrination of Japan s youth through the ancient martial ways. These actions would lead to a revival of the samurai image and a calling for ultimate loyalty to the emperor. Eventually, the instruction of bushido and budo would come to a halt in 1945 with Japan s defeat to the United States. The occupying forces would impose a ban on all budo related studies and transform the Japanese educational system. However, Budo and bushido did not remain dormant and would finally see a revival a number of years later under a totally new ideology. This transformation would solidify the existence of budo and bushido as integral components of Japanese society which continue to be practiced to this very day.