Tales of the Basajaun are rooted deep in Basque tradition but reported sightings are rare.
The stories of this being come from the religion of the early Basque dwellers. [The Basque Country is the name given to the home of the Basque people, located in the western Pyrenees, encompassing the border between Spain and France along the coast of the Bay of Biscay. Euskal Herria is the oldest documented Basque name for the area they live in, dating from the 16th century.] It is considered by some to be merely a personification of a wood spirit. There is also a theory that suggests the legend of Basajaun originates from the Basque interaction with the Neanderthals.

Around 40,000 years ago, the Neanderthals were more developed than the existing homo sapiens of the time. The Neanderthals are credited with erecting the first monoliths and were said to construct wooden huts inside the caves where they lived. They were proficient hunters and tool makers and mastered the art of making glue from birch tee resin. This glue was used to bind a stone to wood in making certain tools.