In this chapter, I intend to explicate the philosophical concept of peace from the perspective of Daoism implied in the Laozi. The discussion consists of three aspects: (1) the concepts of peace in various philosophical schools during the Warring States period of ancient China, (2) the anti-war sentiment and its indications to the Laozi’s view concerning war and peace, and (3) possible contemporary implications of the Laozi’s idea of peace for peace studies. I will submit that the argument on peace in the Laozi is more complicated than simply labelling it as “pacifism” in a sense of an absolute refusal to bear arms. I will contend that peace in the Laozi is closer to “pacificism,” a term employed in contemporary discourse of peace, indicating a commitment to peace and peacefulness but not a principled or absolute rejection of war. Meanwhile, I will explain how the Daoist idea of peace or peace-making implies the mechanism of seeking effective ways to deal with the underlying causes and dynamics that create conflicts and violence.