This chapter examines Wang Fuzhi’s (1619–1692) critique of the Laozi, particularly in its metaphysical and ethical dimensions. Wang Fuzhi grouped Laozi’s philosophy, Buddhist teachings, and Legalism together as the three most damaging theories in Chinese intellectual history and claimed that their combined influence led to great calamities in Chinese society. Such a harsh assessment of Laozi has raised strong reactions among contemporary scholars. Even specialists in Wang Fuzhi’s philosophy have widely regarded his critique as unjust, biased toward Confucianism, and lacking in a genuine understanding of the Laozi. One of the most pointed attacks comes from contemporary Wang Fuzhi scholar Mingran Tan, who argues that Wang Fuzhi’s critique of the Laozi stemmed from his own Confucian prejudice and that Wang failed to grasp the profound and subtle brilliance of Laozi’s thought. This chapter counters such criticisms by offering a philosophical defense of Wang Fuzhi’s critique of Laozi. It argues that Wang Fuzhi’s opposition to Laozi’s teachings was grounded in their fundamentally divergent metaphysical standpoints and ethical orientations. Wang Fuzhi viewed the Laozi’s conception of Dao as an abstract construct detached from human reality. This transcendent Dao has no direct relevance to practical human concerns and concrete moral life. On ethical grounds, Wang Fuzhi condemned Laozi for promoting apathy and inaction (wu wei), which he saw as fostering moral detachment and ethical irresponsibility. By analyzing Wang Fuzhi’s writings across his complete works, this chapter demonstrates that Wang Fuzhi’s critique of Laozi was consistent with his broader philosophical commitments to moral realism and his mission to uphold humanistic values. Ultimately, Wang Fuzhi’s rejection of Laozi reflects his conviction that philosophy must serve a practical role in shaping moral individuals for the establishment of a moral world.