Abstract: This paper discusses the advocating of Daoist religion and the fortunes of the rulers of Liao state in the Ming Dynasty. Daoist religion played a key role when the rulers of Liao was favored and then suspected by the emperors. While Daoism helped the first ruler of Liao survive from a political risk, it was also one of the elements which led to the destruction of the last ruler of Liao named by ZHU Xian-jie. Because of his advocating of Daoism, Zhu was favored by Emperor Jiajing but was deprived of the title and attacked by Emperor Longqing. Although the collapse of Liao was related to Zhu’s self-indulgent personality, it was also a result of political persecution. The political rival of ZHU took the advantage of Confucians’ hatred of Emperor Jiajing’s following the Daoist doctrines, framed up ZHU and made a false charge of his conspiracy against the empire. However, ZHU’s advocating had an indelible impact on the Daoism in his feod Jingzhou.