Located in the northeast of the country; Shan State covers one-quarter of Burma's land mass. It was traditionally separated into principalities and is mostly comprised of ethnic Shan; Burman Pa-O; Intha; Taungyo; Danu; Palaung and Kachin peoples.

The ethnic Tai-Shan people are believed to have migrated from Yunnan in China. The Shan are descendants of the oldest branch of the Tai-Shan; known as 鈥楾ai Long' (Great Tai) or 鈥楾hai Yai' (Big Thai). The Tai-Shan who migrated to the south and now inhabit modern-day Laos and Thailand are known as 鈥楾ai Noi' (Little Tai) or 鈥楾ai Nyai'.

The Shan have inhabited the Shan Plateau and other parts of modern-day Myanmar as far back as the 10th century CE. The Shan kingdom of Mong Mao (Muang Mao) existed as early as the 10th century CE; but became a Burmese vassal state during the reign of King Anawrahta of Pagan (1044-1077).