Abstract In this essay I discuss Laozi’s way of thinking via its oppositional terms. This discussion will come in three parts: first, Laozi emphasizes the relationships of mutual revelation and transformation between the opposites, second, Laozi stresses on reverse thinking to pursue the realization of higher value; third, Laozi also places importance on balance and harmony between the oppositional sides. From these three points, we can say that Laozi penetrates the relationships of the opposites from its description of this empirical world and suggests that people use reverse thinking to pursue the balance and harmony of double sides. We can say, therefore, that Laozi consciously points out the dynamics and dialectics between the opposites such as hardness and softness, motion and stillness, etc. And if we can understand Laozi’s philosophical characteristics of dynamics and dialectics, we can avoid inconsistent understandings of Laozi’s Philosophy.