Taoism (Daoism) is a philosophy and later also developed into a religion based on the texts the Tao Te Ching (ascribed to Laozi) and the Zhuangzi (partly ascribed to Zhuangzi). The character Tao (Dao) literally means "path" or "way". However in Daoism it refers more often to a meta-physical term that describes a force encompassing the entire universe but which cannot be described nor felt.

 All major Chinese philosophical schools have investigated the correct Way to go about a moral life, but in Taoism it takes on the most abstract meanings, leading this school to be named after it. It advocated non-action (wu wei), the strength of softness, spontaneity, and relativism.

Although it serves as a rival to Confucianism, a school of active morality, this rivalry is compromised and given perspective by the idiom "practise Confucianism on the outside, Taoism on the inside." Metaphysics in Wei and Jin dynasty and Neo-Confucianism in Song and Ming dynasty were both formed and developed with the mixture of doctrines of Taoism. Buddhism, after introduced into China, was also influenced by Taoism and Zen was inspired by Chuang Tzi in some aspects.

Most of Taoism's focus is on what is perceived to be the undeniable fact that human attempts to make the world better actually make the world worse. Therefore it is better to strive for harmony.