Blind Illusion was formed in 1978 by-then-high-school student Mark Biedermann, along with many other unspecified members including keyboardist Ben Hevoroh and drummer Bret Hern in Richmond, California. They were originally a progressive rock band.

In late 1981 Mark Biederman and Dave Godfrey went to Bryan Kehoe and asked him to join. Mark along with Les Claypool, Bret Hern and Dave had just completed a 16 track demo of "Kamikazi" and "On Death's Bed". Bryan Kehoe was hired to fill in guitar's Mark had doubled in the studio. The band then went on to work with Wendy and the lost boy's production's Kathi Cuevas and Brian Kretschmer. The lineup stayed as stated above until late 1983. During this period the band worked extensively with bands such as Exodus and Aftermath. The band played shows at Montera Bay center, Alvarado Park and the Henry J. Kaiser ballroom. In late 83 Bryan Kehoe left the band to pursue a solo career. Soon after Bryan's departure Les then auditioned for Metallica. Upon receiving the news he had not been chosen, he went on to form Primus, which was not only his own band, but his own genre of music. The bands lineup then changed to lead guitarist Mark Biederman, vocalist David White-Godfrey, guitarist Pat Woods, bassist Gene Gilson aka Geno and drummer Mike Miner (formerly of local speed metal band Blizzard). The band had also made a stylistic change to thrash metal, becoming major players on the local Bay Area thrash metal scene, but retained much of their progressive rock influence. This lineup recorded many demos and largely increased Blind Illusion's popularity.

In the mid 1980s, David Godfrey left, along with Mark Serale. Pat Woods joined replacing Serale. Mark Biedermann took over vocal duties. Then Metallica hopeful bassist Les Claypool replaced Gene Gilson on bass, adding a new funk influence into the band's bass lines. They released a demo that was produced by Metallica guitarist Kirk Hammett. The band also added second guitarist John Marshall, later of Metal Church, who was replaced by former Possessed guitarist Larry LaLonde.

Around 1987, the band finally got a record deal with Combat Records, with whom the band recorded their only official release, The Sane Asylum, which was released in 1988. The album was considered a thrash classic, featuring now famous tracks such as "Kamikaze" and "Smash The Crystal". The band went on a successful tour for the album but then began to fall apart around 1988. Claypool left in the middle of the tour (and was replaced by friend Adam Gates) to reform his old band Primus. LaLonde followed out the door to join Claypool and Miner left at an unspecified time. Biedermann put together a new lineup featuring guitarist Mark Strausberg, bassist Vern McElroy and drummer Wes Anderson. The lineup began working on a new album in 1989, The Medicine Show, but disbanded before the album was released.

After Blind Illusion broke up, Mark Biedermann briefly played bass for Heathen on their Victims of Deception album and contributed guitar leads for Blue Öyster Cult on their Imaginos album. Meanwhile, Claypool and LaLonde went on to near mainstream success with Primus.

Currently, Biedermann is apparently trying to get The Medicine Show released as well as working on a new Blind Illusion album. The Sane Asylum has become an extremely rare collectors item over the years, but was finally re-released by Metal Mind Productions in a limited edition of 2000 copies on October 2, 2007.

The band has recently reunited as of 2009. On July 7, 2010, the band released its new album Demon Master.