In a legend about the prosperous era of Yao and Shun some 4000 years ago, when Yao was the king, he created many benefits for the people and was loved by them. However, since his son was not as capable as him, Yao did not pass on his throne to his son but to Shun, a wise and saintly man. Yao said to Shun: "You must pass the throne to a right person. Then I will feel at peace when I die." Shun passed his throne to Yu, who was a hero because he could control flooding. Just like Shun, Yu also did a lot of good deeds for the people and was revered by them. After Yao died, Shun set the day he made sacrifices to the heavens and gods, as well as to the late Yao, as the first day of the year, and the first day of the 1st lunar month became known as Yuan Dan or Yuan Zheng. This was Yuan Dan in ancient times. Previous dynasties would organize celebrations and sacrifices on Yuan Dan, for example sacrificing to the immortals and their forefathers, writing Spring Festival scrolls, writing character fortunes and dragon dancing.
關於元旦節的傳說，相傳是再4000多年前遠古的堯舜之時，堯天子在位時勤政於民，為老百姓辦了很多好事，很受廣大老百姓愛戴，但因其子無才太不成器，堯沒把“天子”之位傳給自己的兒子，而是傳給了品德才能兼備的舜。堯對舜說：“你今後一定要把帝位傳給值得的人，待我死後也可安心瞑目了”。後來舜把帝位傳給了治洪水有功的`禹，禹亦像舜那樣親民愛民為百姓做了很多好事，都十分受人愛戴。後來人們把堯死後，舜帝祭祀天地和先帝堯的那一天，當作一年的開始之日，把正月七年級稱為“元旦”，或“元正”，這就是古代的元旦。歷代皇朝都在元旦舉行慶賀典儀祈祀等活動，如祭諸神祭先祖，寫門對掛春聯，書寫福字、舞龍燈。
People also celebrated the day by making sacrifices to immortals and ancestors, pasting spring festival scrolls onto their houses, setting off firecrackers, staying up all night, eating dinners at reunions as well as putting on a "society fire". These scenes are of such impact that the poet Xin Lan in the Jin Dynasty immortalised the scenes of Yuan Dan in his poem Yuan Zheng.
民間也逐漸形成祭神佛、祭祖先、貼春聯、放鞭炮、守歲、吃團圓飯以及眾多的“社火”等娛樂歡慶活動。晉代詩人辛蘭曾有《元正》詩（元正啟令節，嘉慶肇自茲。鹹奏萬年觴，小大同悅熙）記述元旦慶賀情景。
