Weaves of Cambodia has its origins in an organization established in the early 1990s by the Vietnam Veterans of America Foundation (VVAF) founded by Bobby Muller and 1997 Nobel Peace Prize winner Jody Williams. Originally created to assist landmine survivors and other disabled individuals with the manufacturing of their prosthesis, it became clear in the early 1990s that those with a prosthesis also needed a job if their lives were truly to be changed.

Bud Gibbons of VVAF Cambodia had the idea of weaving silk, a traditional Khmer craft in prewar Cambodia and producing silk accessories for foreigner buyers. He brought in artisans to build looms and train staff. Over time, he made contact with weaver and textile designer Carol Cassidy, who provided training and advice. Gradually, the quality of the products improved and interest in their silks began to spread beyond the region.