This study examines how Godai’in Annen’s interpretation of jisho (self-nature) sho of the Kongo Horokaku Issai Yuga Yugi Kyo Dai Shichihi Shosetsu (Sutra of All Yogas and Yogis of the Pavilion with the Vajra-Top Dai Shichihi Shosetsu) was transmitted orally and how in later years it was developed by the scholars of Tomitsu and Taimitsu, forms of esoteric Buddhism of the Shingon and Tendai sects, respectively. It was found that Annen himself did not attribute jinja-waku (illusions innumerable as particles of dust or sand) to jisho-sho and did not use the expression san-waku (three categories of illusion) in the interpretation of jisho-sho. However, Jitsuun, a student of Tomitsu adopted Annen’s doctrine in his own work without citing Annen and presented jisho-sho in relation to san-waku. Furthermore, Jitsuken and Michinori of Tomitsu followed Jitsuun’s interpretation and added the additional information that “Annen expressed it as kenji-waku (illusions of thoughts and desires) and mumyo-waku (illusions about the true nature of existence) of the san-waku.” While Jien maintained a limited interpretation of the gampon mumyo (fundamental darkness) in relation to jisho-sho, Chogo accepted Annen’s teachings but asserted that kenji-waku (illusions of thoughts and desires) and mumyo-waku (illusions about the true nature of existence) were san-waku. Chogo’s description, thus, is a result of the influence of Chuso of Taimitsu.