There were many delicate contents of Buddhist medicine in “Thousand Golden Prescriptions” and “Supplement to Thousand Golden Prescriptions” written by Sun Simiao. In summary,they roughly include the sense of benevolence for rescuing people from sufferings,the theory of “four major” pathogenesis, Qi Po′s formulas and drugs, and Buddhist method for life preservation. There was an interrelation between these contents of Buddhist medicine and the legend of “Dragon Palace Formulas”, so called in “Miscellaneous Container in Dusk Sunshine”by Duan Chengshi in the Tang Dynasty. It was believed in this article that“dragon”in“Dragon Palace Formulas”did not refer to“God of Dragon”with magic power and changing ability and that it should mean“dragon phenomenon”. “Dragon phenomenon”implies a person with strong power and devotion in cultivation of personality.