Taking a comparative approach, this chapter argues that while Laozi’s thought contains a notion of toleration, it goes far beyond the Western conception of it. Laozi’s advocated care and love for all people is suggestive of his preferred attitude and style of toleration. The principled method of wuwei 無為 or “nonaction” suggests a kind of noninterference, which also contains a tendency toward toleration. However, Laozi’s purpose and highest goal is the peace and harmony of the whole world, which is all-inclusive and all-embracing. Advocacy of toleration cannot resolve the situation wherein almost everywhere in the world order and peace are threatened increasingly by terrorism and various forms of conflict. The world needs a broader vision and a more inclusive mind to deal with these problems, which may involve coordinating a variety of techniques, instruments and theories. Laozi’s philosophy, especially his vision and mind that embraces all things, offers an alternative approach to managing conflicting interests and promoting diversity that is particularly inspiring and meaningful.