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This clan takes its name, Clan Dhai, from its first known chief, David Dhu. In earlier times the chief was described as "of Invernahaven". In or around 1350 they joined in the Clan Chattan Confederation of Clans and were involved in a quarrel over precedency with the Clan Macpherson. Some historians claim that this quarrel led to the famous combat on the North Inch of Perth in 1396 when thirty members of each clan fought against each other in the presence of the King. All but one of the Davidsons were killed and from then onwards the clan was not prominent. The Davidsons of Tulloch and the Davidsons of Cantray were influential branches of the clan in the 18th century. The Tulloch branch is now regarded as the senior branch.
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