Buddhism is faced with challenges and opportunities in the trend of globalization. This thesis will discuss how Humanistic Buddhism break through barriers of ethnicity and religion through Physical Education, and create values and perspective of Humanistic Buddhism. The purpose of this study begins from the ideology of the Venerable Master Hsing Yun’s propagation of Dharma through Physical Education, focusing on the Three Acts of Goodness, in order to examine the ideology and realization of sports as a way of propagation in Fo Guang Shan. This paper will also analyze the sports team under the Fo Guang Shan Sport Association to determine the success of the implementation of the Three Acts of Goodness, in order to see the highlights behind this form of Dharma propagation. Except literature review, this paper will also use Polanyi’s tacit knowing theory to explain the impact the Three Acts of Goodness has on the athletes. The second chapter of this thesis is an examination of the philosophy behind Venerable Master Hsing Yun’s effort in propagating Dharma through sports, placing the importance on cultivating human minds through the Three Acts of Goodness. The relationship between Buddhism and sports is a learning to balance the body and mind. In order to foster talents that uphold the Three acts of Goodness, the Five Precepts and Ten Wholesome Acts is taught as the foundation for ethical values, along with the Eight Ways of Being Healthy and the Eight Ways of Curing the Mind. When the ideology of the Three Acts of Goodness is conferred and realized, it will be part of a person’s consciousness, and the seed of the Three Acts of Goodness will grow, as stated by Polanyi’s tacit knowing. The important features of such method of Dharma propagation is that it represent a new form of thinking for ways to propagate the Dharma, as well as expand the educative purposes of Physical Education. Through promoting the Three Acts of Goodness, it achieves the goal of growth of character, improve society, and slowly heading towards the goal of world peace. Propagating the Dharma through Physical Education is a skillful means, and a positive way to engage with the society. If the Physical Education as means of propagation could develop well, it will have positive impact upon the development of sports and society.