The term modernism was first used in the late 19th century when the society was eager to alter, reshape or improve their environment assisted by the rapid growth of technology and advancement of science. Hence any furniture that is built during that period and conformed to the trend of modernism is referred to as modern furniture.

Many eyebrows were raised when the first lot of modern furniture was introduced to the public in Germany in the early 1900s as they were made of non-traditional materials such as moulded plywood, metal and plastic. The idea of using such revolutionary materials combining with innovative and artistic designs later became the philosophy of Deutscher Werkbund, a governmental agency created to promote German art and design around the world

Additionally, modern furniture is also tremendously influenced by Asian and African arts, particularly Japanese, where solid colors and contrasting patterns are used on furniture. This Zen-inspired simplicity is perceived as beauty and classy. Some even believe the Art Noveau movement sprung out of this influence and artists such as Charles Rennie Macintosh, Eileen Grey and Frank Lloyd are known for their modern works which are often infused with Asian motives.

Many of these artists were trained in the Bauhaus school which was Germany's most avant-garde art and design school. But as a result of World War II, many were forced to flee to the United States when the school was closed in 1933.

Eileen Gray's Side Table designed in 1927 is a good example of Bauhaus style modern furniture as it is non-symmetrical, simple and adaptable (it can be used as side table and breakfast table for the bed).

Other followers of Bauhaus movement, Mies Van Der Rohe and Lily Reich jointly designed the Barcelona Chair which was directly influenced by the ancient Pharaoh's chair and footstools of Ancient Romans. It was dedicated to the Spanish Royal Family and was featured in the Barcelona International Design Fair in 1929.

Another specimen that demonstrates the use of Asian ideas is the Noguchi Coffee Table. It is hailed for its ultra simple and organic with no ornaments whatsoever. It was designed by Isamu Noguchi, the Japanese- American sculptor, architect and landscape designer.

However, not all furniture built around 1900s are referred as Modern Furniture as influence from traditional design still lived on. As a matter of fact, a new breed of furniture was also created as there were neither 'traditional' nor 'modern' and thus didn't really fit in either category. This sort of hybrid furniture was called Transitional Furniture and they often appeared to have visual reference to classical Greek from as well as some Asian and tribal themes.