There is a pervasive misunderstanding among people that Daoism stands against any kind of moral ethics. In fact, Laozi, himself, had a fully formed, distinct and profound moral ideology. He presented a moral and metaphysical principle of Chinese linguistic significance by applying Dao as the original principle. And also, he produced a series of elaboration about the construction and function of moral self. He also criticized the alienation of the Confucian ethical code, meanwhile he reviewed the alienation of ethics. Laozi distinguished between forms of intellectual knowledge and forms of moral knowledge, as well as intellectual ability and the ability to be virtuous. He initiated a penetration inspecting of intellectual abuse within the areas of virtue and morality. He developed an extensive and transcendent principle of benevolence to stand against the view of view of benevolence, which is differentiation of love, in early Confucians. Finally, his moral ideology has enlightened the modem environmental philosophical discourse.