Known to his friends and associates as Lajkó, Breuer studied and taught at the Bauhaus in the 1920s. The Bauhaus curriculum stressed the simultaneous education of its students in elements of visual art, craft and the technology of industrial production. Breuer was eventually appointed to a teaching position as head of the school's carpentry workshop. He later practiced in Berlin, designing houses and commercial spaces. In the 1920s and 1930s, Breuer pioneered the design of tubular steel furniture. Later in his career he would also turn his attention to the creation of innovative and experimental wooden furniture.

Perhaps the most widely-recognized of Breuer's early designs was the first bent tubular steel chair, later known as the Wassily Chair, designed in 1925 and was inspired, in part, by the curved tubular steel handlebars on Breuer's Adler bicycle. Despite the widespread popular belief that the chair was designed for painter Wassily Kandinsky, Breuer's colleague on the Bauhaus faculty, it was not; Kandinsky admired Breuer's finished chair design, and only then did Breuer make an additional copy for Kandinsky's use in his home. When the chair was re-released in the 1960s, it was designated "Wassily" by its Italian manufacturer, who had learned that Kandinsky had been the recipient of one of the earliest post-prototype units.