In Mexico, the art of paper-cutting goes back to pre-Columbian times, when bark paper--made by women from bark collected by men in the spring--was used in a variety of ways. It was an offering to the gods and a tribute to the Aztec emperor, Moctezuma II. On certain holidays, it decorated the idols in temples and palaces. Priests embodying the gods and the cosmos wore elaborate costumes of colored paper on certain ceremonial occasions. Other early uses of cut-paper also had a spiritual dimension: cutouts of dark paper were made to represent evil spirits; those of white paper represented good spirits and were used by healers and witches in their rituals. And, of course, paper was used to record commercial transactions and historical events.

Today, Mexicans and Mexican Americans use papel picado--literally, "punched paper"--to commemorate traditional holidays, national fiestas, and family celebrations such as birthdays and weddings. One of the most popular Mexican celebrations is El Dia de los Muertos (Day of the Dead). On this holiday, colorful paper cutouts depicting dancing skeletons, market scenes, or other everyday activities are part of the offerings on family altars. On other occasions, other traditional motifs are preferred: a pair of doves for a wedding celebration or the image of the Virgin Mary for a religious holiday.

Traditionally, once a pattern was developed, artists used hammers along with special punches in different shapes to cut out stacks of tissue paper. Today X-acto knives and scissors, along with various folding techniques, have largely replaced the old tools and methods. The paper now most widely used for papel picado is the colored tissue paper known in Mexico as papel de china.