Moral education has recently been the topic of focus in the fields of education. A review of literature shows that religious education serves as a valuable foundation for developing moral education. Specifically, Chinese Buddhism is one of the most popular religions worshipped among ethnic Chinese people, and Sheng Yen (1930–2009) holds an influential position in the Chinese society, as well as a status that cannot be overlooked in the domains of world religions. Therefore, this study adopts a hermeneutics research methodology to clarify Yen’s ways of thinking regarding morality and education. Based on the philosophy of education, Chinese Buddhism’s thinking of moral education is elucidated to provide a basis for implementing the philosophy of education. First, this study investigates the background of Yen’s life to achieve a fusion of horizon based on hermeneutics perspectives. Second, we explore Yen’s moral thinking and implication to establish a foundation for our subsequent discourse. Third, an analysis of Yen’s core thinking and purposes of education is conducted to summarize the orientation to which Yen’s thinking of education should be implemented. Next, we provide a discourse on Yen’s thinking of moral education according to the philosophy of education, subsequently proposing inspirational ideas and recommendations for educational practices. Finally, a holistic discourse of this study’s findings is presented, and relevant suggestions for future studies are proposed.