The Xiangzi Temple was built in the Song Dynasty (960-1279) and flourished in the Yuan (1271-1368) and Ming (1368-1644) Dynasties. A Quanzhen Taoist Temple, it is said to be the former residence of Han Xiangzi, one of The Eight Immortals (a group of legendary figures in Chinese mythology). There are more than ten Xiangzi Temples in China, but it is the one in Xi'an where Han Xiangzi became a Taoist priest, thus this temple has been considered as the birthplace of Xiangzi culture of all ages.

Xiangzi Temple occupies an area of two and a half mu (about 0.41 acres), stretching 88 meters from east to west and 7 meters from north to south. The entire temple is neat and orderly, quiet and elegant, showing the profound history, culture and Taoist charm. The temple consists of the temple area, south courtyard and north courtyard, among which the temple area is divided into two sections. The front section includes the square, Shan Men (Mountain Gate), XiangQuan (Fragrant Spring), and Guo Dian/Lingguang Hall, while the Xiangzi Hall, namely the main hall, constitutes the whole back area.

Destroyed by war in ancient times, the Xiangzi Temple has been under restoration since 1990, made up of blue bricks, blue tiles, painted pillars and carved beams. Originating from the ancient times and even surpassing the past, the exquisite craftsmanship, which includes brick arranging and sculpturing, stone casting and carving, as well as wood carving, fully demonstrates the architecture of traditional temples.

There are two locust trees with luxuriant branches in the temple, rich in aura. Legend has it that the well water of Xi'an in ancient times was quite bitter. Once, Han Xiangzi poured his self-made wine into the well, then the well water became extremely sweet. Since then, the well in Xiangzi Temple has been widely named as "Xiang Quan", meaning the "Fragrant Spring", and "Xiang"can also be considered as "Xiang" in "Han Xiangzi". Based on this allusion, the "sweet water well" and "sweet water" have spread in Xi'an city.