In Chinese lore, Lohan were bandits who roamed China making their living by stealing, lying and cheating. Legend notes one notorious Lohan who was befriended by a Buddhist monk who gave him food and shelter. Impressed by the monks generosity, the Lohan decided to change his ways. He studied subjects which included religion and philosophy and eventually became a model citizen. Today, Chinese revere this Lohan as a scholar and religious figure and admire his ability to put down his weapons and turn to prayer.

Chinese Buddhism recognizes three types of spiritually perfected beings:

1. Buddhas who perceive the truth for themselves and teach it to others.
2. Pratyeka-Buddhas (private buddhas) who perceive the truth but keep it to themselves.
3. Arhats (Worthies) who learn the truth from others, but realize it only
for themselves. In Mandarin Chinese, Arhat is called Lohan.

The Lohan belongs to this third class of Buddhas. Through his earnest belief in the teachings of Buddha and his desire to become a Lohan, he has attained a state of perfected form. He already enjoys Nirvana on Earth and will enter fully into that blissful state upon his death. The road to becoming a Lohan is a hard one as the person must dedicate his life to the attainment of personal virtue based on self-sacrifice.