Kaede serves as a respected elder and shrine priestess in her village, revered for her spiritual guidance and wisdom. She is the younger sister of Kikyo, a powerful priestess who perished protecting the Shikon Jewel. During a demon attack on their village, Kikyo fought to defend them; however, a piece of debris from a shattered demon struck Kaede, costing her right eye. Following Kikyo's death, Kaede assumed the mantle of village protector, employing her spiritual abilities to ward off demonic threats and offer counsel.

She recognizes Kagome Higurashi as Kikyo's reincarnation when Kagome arrives from the modern era. To aid Kagome in controlling Inuyasha, Kaede places the "Subjugation Beads" around his neck, granting Kagome the power to subdue him with the command "Sit." Kaede subsequently mentors Kagome in honing her innate spiritual powers and priestess techniques. Her deep knowledge encompasses the nature of the Shikon Jewel, which she explains contains the dual spirits Naohi (good) and Magatsuhi (evil).

Years later, Kaede provides shelter and guidance to Rin, helping her acclimate to human society after Naraku's defeat; this arrangement lasts six years before Rin enters an enchanted slumber. Kaede also participates in significant community events, including the birth of Sango and Miroku's son.

By the time of "Yashahime," Kaede continues her role as spiritual advisor and elder. She trains Kohaku, who becomes a demon slayer and later mentors Setsuna, one of Sesshomaru's twin daughters. Her enduring presence bridges multiple generations, sustaining stability and wisdom within the village through recurring conflicts and transitions.