Recovered: throughout the series
Appearance: Skyward Sword, Ocarina of Time, A Link to the Past, Twilight Princess, Wind Waker, Oracle of Ages/Seasons
The Master Sword has a peculiar aura about it: the blade of evil's bane cannot be touched by evil. The only person who can actually wield the blade would be the Goddesses chosen hero. According to legend, the sword was crafted by the ancient sages (according to legend) to repel evil.
Early in it's history, the Master Sword served as both a weapon against evil and as a key for time travel. After the events of Skyward Sword, many evil hearts somehow penetrated the Sacred Realm in their quest for the Triforce. When the sages noticed this, Rauru, the sage of light constructed the Temple of Time allegedly over the ruins of the sealed grounds in order to protect the Triforce. Since the Master Sword is so powerful, and can act as a key- it was a natural choice for protecting the only way to the sacred realm.
The sword was stored in the Sealed Grounds (old Temple of Hylia) and later in the Temple of Time (rumored to be built on the Sealed Grounds), guarded by an altar and the Door of Time. The Master Sword acts as more than just a weapon: it is the key that allows the wielder to access the Temple of Light, where the Triforce is located. The Temple of Time is merely train station A to get to the triforce at station B. The only weapons strong enough to defeat Ganon are the silver arrows and the Master Sword. In official canon, in the Japanese manual of A Link to the Past, the Master Sword was created long before the Imprisoning War.
Before its transformation into the Master Sword, the Skyward Sword rested in Skyloft as the Goddess Sword.
In Ocarina of Time, Link attempted to pull the sword out of the pedestal of time and succeeded.
Later, in titles such as A Link to the Past and Twilight Princess, the blade remains forgotten in the Pedestal, surrounded by the ruins of the old Temple of Time. The way to the Temple of Light was closed long ago in these titles. Over the course of
WARNING: THE FOLLOWING INFORMATION HAS NOT BEEN CONFIRMED TO BE CANON
According to the Skyward Sword manga, the Master Sword was indeed forged by a band of courageous heroes who could be called sages. This manga blurs the line between the Goddess Sword and the Master Sword. The sword was given to a knight of Hylia, Link by the Goddess Hylia. When the sword, which could only be used by a God was touched by a human, it shattered. It was reforged and its power reinvigorated by the spirit of Link and the goddess herself. With the weapon, Hylia sundered the earth of many demons.
The Master Sword acted as a pillar to raise Skyloft up into the air. Hidden in Skyloft was an entrance to the Sacred Realm where the Triforce stayed. To protect it, Hylia sent up the plot of land into the sky along with the inhabitants of the kingdom. It was on that piece of land that Skyloft was formed. Before Hylia sacrificed her divinity to seal Demise, the sky was protected with a barrier that would keep evil out.
It is unclear after the Master Sword acts as the center pillar to lift Skyloft as to what actually happens to the blade. We do know however, that, according to the manga, the Master Sword became the Goddess sword with a resident spirit, created by Hylia, to guide the hero to the blade in times of danger.
If the manga is correct, it could then be argued that if the Master Sword lifted Skyloft into the air by creating a pillar that the Pedastal of Time is directly on or located near the point where the pillar was made.
The source of some of this information was Zelda Wiki, the games themselves and Hyrule Historia. I will come back again when I get the full copy of Hyrule Historia to add more relevant information, if it exists. It is important to note that although I believe Zelda Wiki is correct and great in many respects, I believe some of the information is inaccurate, wrong or has weak evidence.