The Exotic Shorthair grew from a different original desire. American Shorthair breeders bred to Persians to obtain their lovely silver color and green eyes. The kittens were pretty to look at but did not meet the true American Shorthair type. Jane Martinke noticed the effect the outcrosses had on the American type and coat as well as the attractiveness of the kittens. She proposed a new breed, called the Sterling because of their lovely silver color. These new cats were to look just like Persians but with a short, dense plush coat. Originally intended to be silver only, the new breed changed the name to Exotic Shorthair and accepted all colors. Only a few outcrosses were made to shorthaired but because the gene is dominant. In addition to the American Shorthair, some breeders chose to use the Burmese for its stocky body type, moderate head and short coat, while others went to the Russian Blue for the shorthaired gene because of its dense double coat. After the initial outcross to get the short coat, the offspring were bred back to Persians. At about the same time, Carolyn Bussey (New Dawn) crossed a Burmese and a red tabby Persian in an attempt to create a brown Persian. Brown is recessive so all the kittens were black and Carolyn also got the idea to develop a short-coated Persian.

Early progress was slow and difficult as Exotic Shorthair breeders tried to get Persian breeders to work with them. Gradually as the type on the new breed improved and it became more popular, an increasing number of Persian breeders were willing to help and some decided to work with the young breed as well. The goal was to produce a short-coated Persian so as Persian type changed so did Exotic Shorthair type. The early standard did not call for the Exotic to have a break like the Persian because of its shorthaired ancestry, however as the type came ever closer to the Persian this changed and the standards are now identical except for coat length. They have had championship recognition in TICA since June 1979.