GUILD began making the D-40 dreadnought acoustic in the 1960s, as a response to the folk music boom of the time. The model was discontinued for a time in 1991. The D-40 was retintroduced in 2003, when Fender aquired Guild and moved all Guild production to its factory in Corona California. This reissue was shortlived as production of the D-40 stopped when Fender aquired the Tacoma Guitar Company and moved American Guild production to Tacoma Washington.

In 2008, Fender again moved Guild when they acquired Kaman Music Corporation and its production facility in New Hartford, Connecticut, where hand production of all US-made Guilds resumed. The New Hartford Guild facility began production in early 2009, starting with the D-55 and F-50 models. Production quickly ramped up to include the D-40.