The most important characteristic of Laozi Zhigui is using the idea of Shenming(神明)and Taihe(太和)to interpret Dao.Some scholars explain Shenming and Taihe as different stages in universal development.This cosmological explana-tion doesn't fit with the whole text of Zhigui.Shenming and Taihe are the demonstration of Dao itself.Shenming displays the spiritu-al dimension of Dao and connects Dao to the life of human individual,showing Dao's significant influence in human world.Taihe represents harmony and diversity,which are a positive expression of the work of Dao in the world.The idea of Shenming and Taihe is a great contribution to the philosophy of Dao.