Taoist tradition is often described as having two broad dimensions that interweave with one another: philosophical Taoism (Daojia) and religious Taoism (Daojiao). Philosophical Taoism is rooted in classical texts such as the Daodejing and the Zhuangzi, and centers on themes like wu wei (non‑forcing or non‑action), naturalness, spontaneity, and freedom from rigid distinctions. It tends to function more as an intellectual and contemplative current than as an organized religious institution, focusing on reflection, commentary, and spiritual insight. Later currents of interpretation, such as Xuanxue (“Mysterious Learning”), further developed these ideas by engaging in sophisticated commentary and synthesis with other Chinese traditions.

Religious Taoism, by contrast, takes shape as an organized religious movement with institutions, clergy, ritual, and a rich pantheon. Within this sphere, several major schools emerged. The Way of the Celestial Masters (Tianshi Dao), whose modern continuation is often called Zhengyi, is one of the earliest; it emphasizes community structures, moral discipline, confession, talismans, healing rites, and hereditary or family-based priesthood, with clergy who may marry and serve local communities. Over time, this tradition came to provide ritual services for households and villages, forming an important backbone of communal religious life.

Other influential religious schools include Shangqing (“Highest Clarity”) and Lingbao (“Numinous Treasure”), both of which arose from revelatory movements. Shangqing is known for its refined meditation practices, especially visualization of deities and inner cosmologies, and it contributed significantly to later developments in internal alchemy and body-centered spirituality. Lingbao, on the other hand, is distinguished by elaborate liturgies, salvation-oriented rituals, and ceremonies of cosmic renewal, drawing on and reworking ideas that resonate with Buddhist notions of universal salvation and merit. Together, these movements shaped much of the ritual, cosmological, and meditative framework of later Taoism.

A further major school is Quanzhen (“Complete Perfection” or “Complete Reality”), which developed as a monastic movement. Quanzhen emphasizes ethical discipline, celibacy, meditation, and internal alchemy, while also integrating elements associated with Chan Buddhism and Confucian moral cultivation. Its lineages, such as the Longmen (“Dragon Gate”) branch, became especially prominent and remain central to institutional Taoism. Across these various schools, practices such as internal alchemy (neidan), the cultivation of qi through meditation and breath, and the use of talismans and ritual techniques often cut across formal boundaries, illustrating how Taoism continually weaves together philosophical insight, ritual efficacy, and embodied cultivation into a single, multifaceted Way.