Fahua Temple was one of the largest Buddhist temples of Jiaodong Peninsula at that time built in tang dynasty (618-907ad). It was later destroyed in Huichang Period of Tang Dynasty. According to historical record, Fahua Temple was originally built by people from Xinluo or the present Korea. In the prime of Tang Dynasty, Zhang Baogao from Xinluo was invited to China and was appointed a military officer in Wuning or today' s Xuzhou. With his superb martial arts and courage, Zhang Baogao gained respect from both soldiers and officers in the army. Later, he returned to Xinluo and was appointed ambassador in Qinghai Township. During his service, he was actively engaged in commerce and trade between China and Korea and paved for people of both countries a "Silk Road on the Sea", and thus he was considered as a renowned international trade expert at that time. In those intervening years when he was in office, he was attracted to the renowned Chishan Mountain where he invested the construction of the first temple in this place and invited some Buddhist monks for praying. Since the first batch of monks were from the Tiantai Sect who regarded Fahua Scripture as their classic, hence the name "Fahua Temple" for this temple.
Fahua Temple enjoys great fame in Tang Dynasty and in the prime of Tang Dynasty there were more than 30 monks living here, whose daily necessities were provided by Zhang Baogao. With its great fame, Fahua Temple attracted many people to burn incense here and whenever there was a preaching delivered by a certain master, there would be more than 200 people coming to audit, which was really a spectacular scene. In June of the fourth year of Kaicheng period of Tang Dynasty, a group of Japanese monks headed by Master Yuanren visited Fahua Temple to learn Buddhist scriptures. During their stay in the temple for two years and nine months, Yuanren was able to know about Chinese's culture, politics, economic situation as well as religions in Tang Dynasty with the help of local senior masters. After returning to Japan, Yunaren compiled his knowledge about China during this trip into a book entitled Notes on the Trip to Tang for Buddhist Learning, which is regarded as one of the three greatest travel notes in the East. In the book, he offered detailed description about Fahua Temple, which makes Fahua Temple popular both at home and abroad. Besides, to show his gratitude to Chishan habitants, Yuanren asked his disciples to build a temple named "Chishan Monastery" in Kyoto of Japan. Small as this monastery looks, it has a long history and bears the friendship between Chinese, Japanese as well as Korean people.