Chinese Buddhism strives to play the role of a directing compass for positive potential in contemporary society, which in turn leads to a necessity to be modernized. The modernization of Chinese Buddhism has four fundamental aspects, namely the modernization of the social function and localization of Buddhist culture, the development of modern Buddhism, the modernization of Buddhism management, and the modernization of Buddhist education and fostering of talents. Venerable Master Hsing Yun's Humanistic Buddhism plays an important and exemplary role in leading the actualization of Chinese Buddhism's modernization. This includes: 1) in the understanding of the social potential of Buddhist culture and its localization, as well as improving the clarity in its actions; 2) in the area of Buddhist organizational management, institutionalizing regulations in monasteries and improvement of their actions; 3) in Buddhist education and personnel training in order to promote and enhance their activities and practice; 4) in the expansion and development of Buddhist undertakings to the extent that they become a role model for right action.