[Abstract] Hui-neng, formerly an illiterate woodcutter, established Chan (dhyāna) School successfully, because he was endowed with excellent personalities and characters and met the great historical opportunity. Taking traditional Chinese culture as his central position, Hui-neng made Chan embody the characteristics emphasizing human being, ordinary people, self-nature, reality, sudden realization and simplicity and so on, and thus achieving the localization of Buddhism in China in the following three aspects: theory, cultivation and accomplishing buddhahood, which constitute the three major components of thought of Chan School. This was an event of milestone in the course of localization of Buddhism in China. The establishment of Chan School by Hui-neng boosted not only the development of Buddhism in the world, but also of Chinese culture. Hui-neng’s practice in advancing the localization of Buddhism in China leaves us numerous insightful inspirations worthy of study.