To avoid his predecessor's fate, Ieyasu established a dynastic pattern soon after becoming shogun by abdicating in favor of Hidetada in 1605. Ieyasu gets the title of ogosho, retired shogun and retained significant power until his death in 1616.  Ieyasu retired to Sunpu Castle in Sunpu, but he also supervised the building of Edo Castle, a massive construction project which lasted for the rest of Ieyasu's life. The result was the largest castle in all of Japan, the costs for building the castle being borne by all the other daimyo, while Ieyasu reaped all the benefits.

After Ieyasu's death in 1616, Hidetada took control of the bakufu. He strengthened the Tokugawa hold on power by improving relations with the Imperial court. To this end he married his daughter Kazuko to Emperor Go-Mizunoo. The product of that marriage, a girl, eventually succeeded to the throne of Japan to become Empress Meishō. The city of Edo was also heavily developed under his reign.