A large number of literati and officers were keen to participate in Buddhism so that Lay Buddhism was flourish in the Song Dynasty. In addition to the prevalence of literal Chan, it was also a critical period for the transformation of Kung-an (Koan) Chan into Huatou Chan. Master Keqin (1063-1135) played a role in this transformation process. This research will start with the Master Keqin’s teaching for Gahapati as the entry point. Firstly, it will explore the formation background of Song lay Buddhism and literal Chan. Then, the research material will be focus on “The Recorded Sayings of Chan Master Yuan-Wu Fo-Kuo”. From his disclosures and teaching for these literati, that was presenting the unprecedented situation of Song lay Buddhism. Moreover, how can Chan master instruct these laypersons to investigate Chan in the turbulent secular world? How to turn the Three Realms Fire House into a refresh Bodhimanda? How to practice the way of liberation by the mundane work? These practical engaged Chan is a feasible method for laypersons to apply in modern busy life and work, furthermore the Chan master’s instruction for these laypersons demonstrated his Chan praxis as well. Depending on the character and potential of the students, he flexibly employ the three teaching approach and Linji Chan praxis to help students break through barriers and get enlightenment. In short, the first teaching approach was the prototype of Hua-tou Chan, therefore Master Keqin was one of the crucial pioneers of Huatou Chan, rather than the promoter of literal Chan who caused the decline of Chan in the history. Indeed, he had made a remarkable contribution to the development of Chan in the Song Dynasty, and should have to place him in the important position in Chinese Chan history.