Putuoshan has endured a long, often stormy history, beginning before its transformation in the tenth century into a major Buddhist pilgrimage site. For centuries the island harbored Taoists, who went there to conduct alchemical experiments, and it was an important maritime trading port.

In 916 A.D. it began to enshrine Guanyin, and in 1214 it was designated by an imperial decree to perform Buddhist rites especially enshrining Guanyin by emperor Ningzong of the Song Dynasty.

In the sixteenth and seventeenth century, Japanese pirates and "red barbarians" (Dutch traders) periodically ravaged the island, pillaging the population and destroying temples. Putuoshan’s history is also one of patronage, with influential people such as the Wan-li emperor and his mother building structures and encouraging practice; and of monks and pilgrims having visions, erecting shrines, inscribing rocks with their revelations. Thousands flocked here for the observance of Guanyin’s birthday and enlightenment, when they held all-night vigils.

When it was the most flourishing, the port was crowded with boats communicating people to worship Buddha.  

In 1929 there were 88 small cloisters and 128 hermitages under the direction of the monasteries. Until 1949, about two thousand monks and nuns lived on the island, except at pilgrimage times, when six to seven thousand additional monastics would come. During the Cultural Revolution, many of the structures on Putuoshan were further devastated by the Red Guards. Presently the 3 main temples still exist, but the nunneries are diminished to 30 nunneries, including Dacheng, Meifu and Zizhu.  Today's Putuoshan is also a navy base.