This article argues that ancient Chinese Tao ("The Way") philosophy--which can be traced back more than two thousand years--can explain the essence and philosophy of physical literacy. The motivation, confidence, physical competence, and knowledge and understanding that are needed to value and take responsibility for engagement in physical activities for life are used as a framework to apply to Tao philosophy. This article intends to provide an Eastern perspective (the Taoist approach to physical literacy), open up dialogue for further clarification, and offer insight into a wider range of the contemporary perceptions of physical literacy.