When the Gypsy people first started selective breeding to make the perfect caravan horse, they bred "the best to the best". Their careful and selective breeding over many generations achieved the distinctive features that characterize today's modern Gypsy horse. They started with draft horse breeds we call "gentle giants" like the Shire, Friesian, Clydesdale, Fell and the Dale Pony.

The Gypsies managed to create one of the best family horses in history. They wanted to breed a horse that would fit the needs and culture of their families including the children and they achieved this with the Gypsy horse. It has been noted and said that these horses are so docile children can play and crawl under and around them. The horses are easy keepers as the Gypsy's way of life was one of constant travel and their horses have to eat and drink whenever the caravans stop to rest.