The translation of al-Hadith into Chinese started within the past hundred years. Due to the interruption of several political campaigns, it is only recently that the Chinese translation of the whole “al-Hadith” appeared. However, the meaning of al-Hadith is still quite obscure in the Chinese context. Chinese scholars have traditionally translated al-Hadith into Shengxun(聖訓), which literally means the Prophet Muhammad’s sayings. But this only reflects one dimension of the meaning of al-Hadith. In addition, al-Hadith also encompasses at least the following four meanings: the Prophet’s actions, the Prophet’s acquiescence to his disciples’ sayings and deeds, new things derived from certain events, or new things originated from some greater or smaller amount of transmitted information. Therefore, al-Hadith includes at least the above four layers of meanings, among which the former two are on religious sense, and the latter two are from a linguistic point of view. Translating al-Hadith simply into Shengxun is problematic. The linguistic meaning of al-Hadith as “new things” is especially important for Muslims because it allows Muslim scholars to make new interpretations and deductions in response to new situations in their respective times based on the Hadith and the spirit of the Hadith. This is best evidenced by the various interpretations of Hadith by the Prophet’s disciples as well as the many al- Hadith scholars, theologists and jurists in different eras, regions and circumstances. This article aims to clarify the mistranslation of al-Hadith in Chinese texts by analyzing the meaning of Hadith from the linguistic and biographic points of view, the interpretations made by Orientalists and Muslim scholars, and the practical significance of al-Hadith in contemporary Muslim life.