The temple was first established in 1038, in the 7th year of Chongxi period in the Liao dynasty. The name of "Huayan" derives from Avatamsaka Sutra, which more commonly known as "Huayan Sutra" in China. Part of the temple was devastated in 1122, during the war between Liao and Jin dynasties.
During the reign of Emperor Wuzong in the Yuan dynasty, abbot Huiming supervised the reconstruction of Huayan Temple. Mahavira Hall, abbot's room, and dining room were gradually renovated. In the heyday of the temple, it had hundreds of halls and rooms. After the fall of the Yuan dynasty, most of the temple buildings were destroyed in the battle between the Hongjin and Mongolian armies.
In the early Ming dynasty, the temple was confiscated. It reactivated its religious activities in the mid-15th century, during the Xuande and Jingtai periods.
At the dawn of the Qing dynasty, in 1648, Huayan Temple was reduced to ashes by a devastating fire, with only the Mahavira Hall and Buddhist Texts Library remaining. The temple declined and incredibly disappeared during the middle and later Qing dynasty.
After the founding of the Communist State, the government provided great protection for the temple. Huayan Temple as inscribed among the first group of "Major National Historical and Cultural Sites in Shanxi" by the State Council of China in 1961. It has been designated as a National Key Buddhist Temple in Han Chinese Area by the State Council of China in 1983.
The Mahavira Hall was rebuilt in 1140 under the Jin dynasty. It is nine rooms wide, five rooms deep and covers an area of. On each end of the main ridge is giant Chiwen, a legendary animal with a dragon head and fish tail with colorful glaze and vivid style. They are relics of the Jin and Ming dynasties. In the center of the hall enshrines the statues of Five Buddha, which were carved in the Xuande period of the Ming dynasty. Inner walls were painted with 21 frescos in the Guangxu era of the Qing dynasty.
Buddhist Texts Library
The Buddhist Texts Library was established in 1038, under the Liao dynasty. It is five rooms wide, four rooms deep with single eave gable and hip roofs. A total of 29 Statues of Buddhist deities are enshrined in the hall, including Sakyamuni, Dīpankara Buddha, Maitreya, Guanyin, Manjushri, Samantabhadra, and Ksitigarbha. A set of Chinese Buddhist canon which were printed in the Qing dynasty are preserved in the hall.