Lü Tung-pin’s family name was Lü; his personal name Tung-pin; also Yen; and his pseudonym Shun Yang Tzu. He was born in A.D. 798 at Yung-lo Hsien, in the prefecture of Ho-chung Fu in Shansi, a hundred and twenty li south-east of the present sub-prefecture of Yung-chi Hsien (P’u Chou). He came of an official family, his grandfather having been President of the Ministry of Ceremonies, and his father Prefect of Hai Chou. He was 5 feet 2 inches in height, and at twenty was still unmarried. At this time he made a journey to Lu Shan in Kiangsi, where he met the Fire-dragon, who presented him with a magic sword, which enabled him at will to hide himself in the heavens.
During his visit to the capital, Ch’ang-an in Shensi, he met the Immortal Han Chung-li, who instructed him in the mysteries of alchemy and the elixir of life. When he revealed himself as Yün-fang Hsien-shêng, Lü Yen expressed an ardent desire to aid in converting mankind to the true doctrine, but was first exposed to a series of ten temptations. These being successfully overcome, he was invested with supernatural power and magic weapons, with which he traversed the Empire, slaying dragons and ridding the earth of divers kinds of evils, during a period of upward of four hundred years. Another version says that Han Chung-li was in an inn, heating a jug of rice-wine. Here Lü met him, and going to sleep dreamed that he was promoted to a very high office and was exceptionally favoured by fortune in every way. This had gone on for fifty years when unexpectedly a serious fault caused him to be condemned to exile, and his family was exterminated. Alone in the world, he was sighing bitterly, when he awoke with a start. All had taken place in so short a space of time that Han Chung-li’s wine was not yet hot. This is the incident referred to in Chinese literature in the phrase ‘rice-wine dream.’ Convinced of the hollowness of worldly dignities, he followed Han Chung-li to the Ho Ling Mountains at Chung-nan in Shensi, where he was initiated into the divine mysteries, and became an Immortal.
In A.D. 1115 the Emperor Hui Tsung conferred on him the title of Hero of Marvellous Wisdom; and later he was proclaimed King-emperor and Strong protector.
There are various versions of the legend of Lü Tung-pin. One of these adds that in order to fulfil his promise made to Chung-li to do what he could to aid in the work of converting his fellow-creatures to the true doctrine, he went to Yüch Yang in the guise of an oil-seller, intending to immortalize all those who did not ask for additional weight to the quantity of oil purchased. During a whole year he met only selfish and extortionate customers, with the exception of one old lady who alone did not ask for more than was her due. So he went to her house, and seeing a well in the courtyard threw a few grains of rice into it. The water miraculously turned into wine, from the sale of which the dame amassed great wealth.
He was very skilful in fencing, and is always represented with his magic Excalibur named Chan-yao Kuai, ‘Devil-slaying Sabre,’ and in one hand holds a fly-whisk, Yün-chou, or ‘Cloud-sweeper,’ a symbol common in Taoism of being able to fly at will through the air and to walk on the clouds of Heaven.
Like Kuan Kung, he is shown bearing in his arms a male child—indicating a promise of numerous progeny, including literati and famous officials. Consequently he is one of the spiritual beings honoured by the literati.