The history of Chinese Buddhism begins in the Han dynasty, when Buddhism first began to arrive via the Silk Road networks (via overland and maritime routes). The early period of Chinese Buddhist history saw efforts to propagate Buddhism, establish institutions and translate Buddhist texts into Chinese. The effort was led by non-Chinese missionaries from India and Central Asia like Kumarajiva and Paramartha well as by great Chinese pilgrims and translators like Xuanzang.

After the Han era, there was a period in which Buddhism became more Sinicized and new unique Chinese traditions of Buddhism arose, like Pure Land, Chan, Tiantai and Huayan. These traditions would also be exported to Korea, Japan and Vietnam and they influenced all of East Asian Buddhism. With Tibetan Buddhism is the largest and most influential spiritual tradition in Tibet, which often referred to as the "Roof of the World" due to its high altitude.

Though Buddhism suffered numerous setbacks during the modern era (such as the widespread destruction of temples during the Taiping Rebellion and Cultural Revolution), it also experienced periods of reform and revival. Buddhism is currently the largest institutionalized religion in mainland China especially in the region of Tibet.Cook, Sarah (2017). The Battle for China's Spirit: Religious Revival, Repression, and Resistance under Xi Jinping. Freedom House Report. Rowman & Littlefield.

Han dynasty (206 BCE–220 CE)

Various legends tell of the presence of Buddhism on Chinese soil in very ancient times. While the scholarly consensus is that Buddhism first came to China in the first century CE during the Han dynasty, through missionaries from India, it is not known precisely when Buddhism entered China.

Generations of scholars have debated whether Buddhist missionaries first reached Han China via the maritime or overland routes of the Silk Road. The maritime route hypothesis, favored by Liang Qichao and Paul Pelliot, proposed that Buddhism was originally practiced in southern China, the Yangtze River, and Huai River region. On the other hand, it must have entered from the northwest via the Gansu corridor to the Yellow River basin and the North China Plain in the course of the first century CE. The scene becomes clearer from the middle of the second century onward, when the first known missionaries started their translation activities in the capital, Luoyang. The Book of the Later Han records that in 65 CE, the prince Liu Ying of Chu (present-day Jiangsu) "delighted in the practices of Huang-Lao Daoism" and had both Buddhist monks and laypeople at his court who presided over Buddhist ceremonies.Maspero 1981, pp. 401, 405. The overland route hypothesis, favored by Tang Yongtong, proposed that Buddhism disseminated through Central Asia – in particular, the Kushan Empire, which was often known in ancient Chinese sources as Da Yuezhi ("Great Yuezhi"), after the founding tribe. According to this hypothesis, Buddhism was first practiced in China in the Western Regions and the Han capital Luoyang (present-day Henan), where Emperor Ming of Han established the White Horse Temple in 68 CE.

In 2004, Rong Xinjiang, a history professor at Peking University, reexamined the overland and maritime hypotheses through a multi-disciplinary review of recent discoveries and research, including the Gandhāran Buddhist Texts, and concluded:

The French sinologist Henri Maspero says it is a "very curious fact" that, throughout the entire Han dynasty, Daoism and Buddhism were "constantly confused and appeared as single religion".Maspero 1981, p. 405. A century after prince Liu Ying's court supported both Daoists and Buddhists, in 166 Emperor Huan of Han made offerings to the Buddha and sacrifices to the Huang-Lao gods Yellow Emperor and Laozi.Maspero 1981, p. 406. The first Chinese apologist for Buddhism, a late second-century layman named Mouzi, said it was through Daoism that he was led to Buddhism—which he calls dàdào (, the "Great Dao").I too, when I had not yet understood the Great Way (Buddhism), had studied Taoist practises. Hundreds and thousands of recipes are there for longevity through abstention from cereals. I practised them, but without success; I saw them put to use, but without result. That is why I abandoned them.Early Chinese Buddhism was conflated and mixed with Daoism, and it was within Daoist circles that it found its first adepts. Traces are evident in Han period Chinese translations of Buddhist scriptures, which hardly differentiated between Buddhist nirvana and Daoist immortality. Wuwei, the Daoist concept of non-interference, was the normal term for translating Sanskrit nirvana, which is transcribed as nièpán () in modern Chinese usage.Maspero 1981, p. 409

Traditional accounts

A number of popular accounts in historical Chinese literature have led to the popularity of certain legends regarding the introduction of Buddhism into China. According to the most popular one, Emperor Ming of Han (28–75 CE) precipitated the introduction of Buddhist teachings into China. The (early third to early fifth century) Mouzi Lihuolun first records this legend:

The emperor then sent an envoy to Tianzhu (Southern India) to inquire about the teachings of the Buddha.Hill 2009, p. 31. Buddhist scriptures were said to have been returned to China on the backs of white horses, after which White Horse Temple was named. Two Indian monks also returned with them, named Dharmaratna and Kaśyapa Mātaṅga.

An eighth-century Chinese fresco at Mogao Caves near Dunhuang in Gansu portrays Emperor Wu of Han (r. 141–87 BCE) worshiping statues of a golden man; "golden men brought in 121 BCE by a great Han general in his campaigns against the nomads". However, neither the Shiji nor Book of Han histories of Emperor Wu mention a golden Buddhist statue (compare Emperor Ming).

The first translations

The first documented translation of Buddhist scriptures from various Indian languages into Chinese occurs in 148 CE with the arrival of the Parthian prince-turned-monk An Shigao (Ch. ). He worked to establish Buddhist temples in Luoyang and organized the translation of Buddhist scriptures into Chinese, testifying to the beginning of a wave of Central Asian Buddhist proselytism that was to last several centuries. An Shigao translated Buddhist texts on basic doctrines, meditation, and abhidharma. An Xuan (Ch. ), a Parthian layman who worked alongside An Shigao, also translated an early Mahāyāna Buddhist text on the bodhisattva path.

Mahāyāna Buddhism was first widely propagated in China by the Kushan monk Lokakṣema (Ch. , active c. 164–186 CE), who came from the ancient Buddhist kingdom of Gandhāra. Lokakṣema translated important Mahāyāna sūtras such as the Aṣṭasāhasrikā Prajñāpāramitā Sūtra, as well as rare, early Mahāyāna sūtras on topics such as samādhi, and meditation on the buddha Akṣobhya. These translations from Lokakṣema continue to give insight into the early period of Mahāyāna Buddhism. This corpus of texts often includes emphasizes ascetic practices and forest dwelling, and absorption in states of meditative concentration:Williams, Paul. Mahāyāna Buddhism: The Doctrinal Foundations. 2008. p. 30

Early Buddhist schools

During the early period of Chinese Buddhism, the Indian early Buddhist schools recognized as important, and whose texts were studied, were the Dharmaguptakas, Mahīśāsakas, Kāśyapīyas, Sarvāstivādins, and the Mahāsāṃghikas.Warder, A.K. Indian Buddhism. 2000. p. 281

The Dharmaguptakas made more efforts than any other sect to spread Buddhism outside India, to areas such as Afghanistan, Central Asia, and China, and they had great success in doing so.Warder, A.K. Indian Buddhism. 2000. p. 278 Therefore, most countries which adopted Buddhism from China, also adopted the Dharmaguptaka vinaya and ordination lineage for bhikṣus and bhikṣuṇīs. According to A.K. Warder, in some ways in those East Asian countries, the Dharmaguptaka sect can be considered to have survived to the present.Warder, A.K. Indian Buddhism. 2000. p. 489 Warder further writes that the Dharmaguptakas can be credited with effectively establishing Chinese Buddhism during the early period:Warder, A.K. Indian Buddhism. 2000. pp. 280–281

Six Dynasties and Southern and Northern period (220–589)

The Three Kingdoms (220-280 CE) Though buddhism was known during the Han dynasty, it did not find itself as a stable ideology until the dynasty broke into three kingdoms, Shu, Wu, and Wei.. During this time the three kingdoms fought terribly and commoners and intellectuals alike tried to find a new way to stabilize their land, through the foreign idea of Buddhism as well as their already accepted Daoism. Wei was the strongest and the largest of these three kingdoms and some of its changes remain important for the next several centuries. The king of Wei also claimed to be a follower of Buddhism, using it to better control the Chinese population. There are a large number of relics containing Buddhist symbols during this period that have recently been recovered

Early translation methods

Initially, Buddhism in China faced a number of difficulties in becoming established. The concept of monasticism and the aversion to social affairs seemed to contradict the long-established norms and standards established in Chinese society. Some even declared that Buddhism was harmful to the authority of the state, that Buddhist monasteries contributed nothing to the economic prosperity of China, and that Buddhism was barbaric and undeserving of Chinese cultural traditions.Bentley, Jerry (1993) Old World Encounters: Cross-Cultural Contacts and Exchanges in Pre-Modern Times (New York: Oxford University Press), p. 82 However, Buddhism was often associated with Taoism in its ascetic meditative tradition, and for this reason a concept-matching system was used by some early Indian translators, to adapt native Buddhist ideas onto Daoist ideas and terminology.Oh, Kang-nam (2000). The Taoist Influence on Hua-yen Buddhism: A Case of the Sinicization of Buddhism in China. Chung-Hwa Buddhist Journal, No. 13, (2000). Source: (accessed: 28 January 2008) p.286 Further discussion of can be found in T'ang, Yung-t'ung, "On 'Ko-I'", in Inge et al. (eds.): Radhakrishnan: Comparative Studies in Philosophy Presented in Honour of His Sixtieth Birthday (London: Allen and Unwin, 1951) pp. 276–286 (cited in K. Ch'en, pp. 68 f.)

Buddhism appealed to Chinese intellectuals and elites, and the development of gentry Buddhism was sought as an alternative to Confucianism and Daoism, since Buddhism's emphasis on morality and ritual appealed to Confucianists and the desire to cultivate inner wisdom appealed to Daoists. Gentry Buddhism was a medium of introduction for the beginning of Buddhism in China, it gained imperial and courtly support. By the early fifth century, Buddhism was established in south China.Bentley, Jerry (1993) Old World Encounters: Cross-Cultural Contacts and Exchanges in Pre-Modern Times (New York: Oxford University Press), p. 78. During this time, Indian monks continued to travel along the Silk Road to teach Buddhism, and translation work was primarily done by foreign monks rather than Chinese.

The arrival of Kumārajīva (334–413 CE)