This article aims to provide some cutting-edge exploration of the relatively understudied Yuan Dynasty in terms of the relationship between politics and Buddhism. Its focus lies in the monastic economic aspects, which are the most observable in the interaction between politics and religion. In simple terms, the Yuan government, accommodating the multi-ethnic nature, had a ruling style that went beyond adhering solely to local customs, exhibiting a phenomenon of “one country, multiple systems.” From the examination of political documents such as the Yuan Dianzhang (Statutes of the Yuan dynasty), it is evident that there were significant changes in Buddhist policies, legislation, and enforcement. Regarding the management of Buddhism in the Jiangnan region, there was not only a case of “adapting to local circumstances” but also instances of “adapting to imperial circumstances,” which not only highlighted the flexibility of Mongol Yuan rulership but also revealed its lenient nature. Under these conditions, the monastic economy in Yuan period Jiangnan largely continued the old customs of the Song period, and its diversified operations precisely demonstrated the vitality of Buddhism at that time. Therefore, this article also attempts to argue that the economic conflicts among different Buddhist sects in Jiangnan during the Yuan Dynasty were the main cause of unrest, whereas politics played a secondary role.