The Chan Buddhism mixed intensively with the other schools during Liao Dynasty, which brought about the wide spreading of Chan incorporating the thoughts of Huayan Chan. The origination of this trend can be traced back to Yanyun 16 States at the period of late Tang Dynasty and Wudai. At the late Liao Dynasty, the Yunmen school, the successor of Huayan Chan entered the field of Liao, and once thrived at the time. As their tradition, the governor of Liao, Qidan believe Shamanism and accordingly they are in favor of Tantric Buddhism. Because of the longtime of cultural fusion, the You and Yun two states turned to be the place, where the practice of Chan modified by the tantric Buddhism and Huayan came to its heyday. Despite the recognized fact that the Liao governor prohibited the spreading of Chan, the remained local stone inscriptions show that the lineage and the practice of Chan still existed at that time. As the matter of fact, the Liao governor did not indiscriminately suppress all sections of Chan, they just wanted to eliminate the freewill practice of Chan which was not in accordance with the Buddhist teaching. In general, compared with the other Buddhist schools, such as Tantric Buddhism and Huayan, Chan in Liao Dynasty was so week that it had to depend on Teaching School for the further development, despite its limited growth at the area of Yanjin. The impetus for the fusion of different Buddhist schools came from the ethnic fusion of culture. The section of Chan mixed with the other Buddhist schools may not be taken as the orthodoxy at the later time and will not appear in the historic record, nevertheless the trend of fusion between Chan and Teaching School as always continued and imposed a significant impact on the followers.