This study aims to examine the cultural relationship between the secularization of Taoism during the Ming dynasty and the formation and development of Haiyang Yangge (a folk dance from Shandong). Combining literature review and fieldwork, the study analyzes the relationship between the spread of secular Taoism in folk society during the Ming dynasty and the formative process of Haiyang Yangge. The study finds that Taoist elements were adopted, transformed, and reconstructed within folk performance traditions. This is manifested in the role structure of yuedafu the Bagua-related spatial organization, and the collective ritual functions associated with the Haiyang Yangge Dragon King ritual. The formation and development of Haiyang Yangge can thus be understood as the result of continuous interaction between Taoism and these folk dance traditions. This study deepens the understanding of the historical formation and cultural identity of Haiyang Yangge, while providing a theoretical foundation for the continuity and transmission of traditional culture in a contemporary context.