Lingyin Temple, or the Temple of Inspired Seclusion, was founded in 326 AD by the Indian monk, Hui Li. It quickly became a center of worship for the Zen, and once served as home to more than three thousand monks. During its turbulent times the temple has been destroyed and then restored no less than sixteen times since then. The current buildings are modern restorations of late Qing buildings. Many of these date back to the time when the temple was first founded and a great many were carved during the blossoming of Buddhism during the Tang dynasty. Despite some damage inflicted by red guards during the Cultural Revolution, the temple and grounds escaped much of the wholesale destruction that other temples in China suffered because of the protection of Premier Zhou Enlai.

The hillside to the south of the temple is also famous as a site of old Buddhist caves and rock carvings, the "Peak that Flew from Afar", before reaching the temple. Between the tenth and fourteenth centuries, this peak's rock surfaces were carved with over three hundred Buddhist statues. One of the most famous is that of the Laughing Buddha, known as the Maitreya or the Buddha of the Future. Dedicated to him is a couplet which reads,
"His belly is big enough to contain all intolerable things in the world;
His mouth is ever ready to laugh at all snobbish persons under heaven."
It is believed that if you rub the belly of this Buddha, he will be able to foretell your future and make your wishes come true.

Lingyin temple, like many Chinese temples, is constructed according to a basic pattern. Built on a north-south axis with the main entrance to the south, it is surrounded by a protective perimeter wall. The main entrance, secured by heavy gates, is guarded by sculptures of the Four Guardian Warriors-protectors of the temple.

Standing behind the sculptures is a short spirit wall which prevents direct entry to evil spirits, which are said to travel in straight lines. There’s a courtyard on the far side of which stand several enormous bronze vessels around the wall. These continue to be used to burn either incense or paper offerings to the gods.

The first temple pavilion is usually elevated from the courtyard by a short set of steps. In front of the main Buddha stands an altar piece hosting such objects as candle holders, incense burners and an offering plate containing fruit, money and even candy. At Lingyin Temple, the central statue is an eighteen foot high statue of Sakyamuni, or the Historical Buddha, made in the Tang dynasty (607-960). Carved out of twenty-four pieces of camphor wood, it is said to be one of the largest wooden Buddhas in the world.