After having systematically investigated the location, foundation and development of Dunhuang Temple, this paper holds that Dunhuang Temple is not only the only temple that has lasted to now from Han Dynasty's Chang'an City, but also the oldest temple in Shaanxi province, and one of the oldest temples in China today. The author also considersthat this temple, being the first biggest Buddhist sutra translating site in the history of Chinese Buddhism, occupies an very important position in history and has the great value of development today.