The origin of Chinese Five Elements is integrated with Yin, Yang and the thoughts of Five Elements to expound the philosophy of the theory of Five Virtues Loop. In the theory, the rule of ”against and pro” among the elements of ”wood, fire, earth, gold and water” is explained and extended to the doctrine of ”transition of Five Virtues” that is applied to illustrate the change of Chinese Dynasties in the history. In the book of Rites, the passage written ”in the beginning of spring, flourishing time is at Wooden Age” implies the devolving fate and describes that decree belongs to the men of virtues. Therefore, the theory of three ruling colors was established to describe that Chinese ancient dynasties were built upon three specific colors. For example, black color was adored in Xia Dynasty, white color was worshiped in Shang Dynasty, and Red color was preferred in Zhou Dynasty. The color of black was appreciated again in Qin Dynasty because the dynasty was highly related to the element of ”Water”, which represents black. An ancient Chinese ideologist, Chung-Shu Don, had developed a philosophy based on the theory of ”Five Elements” and the thoughts of Confucians to construct his concept and thinking of virtue derived from notions of ”interactivity between heaven and man” and ”integration of heaven and man.” The theory as well became the foundation of government affairs, humanity, and rites that the Emperor Wu of West Han Dynasty had ruled his empire upon. Ancient Chinese culture was highly influenced by the concepts of Ying and Yang, the Five Elements integrated with colors, Four Seasons, astronomy, calendar, and Twenty-Four Solar Terms. The establishment of the characteristic in traditional Chinese color culture was not only documented in the mythology and fables. It also influenced the Taoism, Buddhism, Zen, and Confucianism, which is very different from the western philosophy. This study is focused on two major aims: 1. The theory of Five Virtues Loop reflecting the formation of Five Colors, 2. Exploring the institution of the meanings of Five Colors to establish the connotations of traditional cultural color based on Five Colors.