With its premiere in 1957, The Magic Lotus Lantern is the first grand dance drama in contemporary China, a symbolic presentation of the art form in China's history. It was a graduate work by the first choreography class of the Beijing Dance School under the guidance and instruction from Soviet expert Choplin and well-known Peking Opera master Li Shaochun.

The dance drama was adapted from a traditional Chinese fairy tale called Pishan Jiumu (saving mother by cleaving through the mountain). A goddess by the name of San Sheng Mu, longing for the peaceful life of the human world, left heaven and fell in love with Liu Yanchang, a scholar, at first sight. But their love was strongly opposed by her elder brother Erlang Shen, a god. With the help of the magic lotus lantern, San Sheng Mu defeated her brother and married Liu Yanchang. Later she gave birth to a baby son called Chen Xiang. The story was not over yet. The deified dog, instigated by Erlang Shen, stole away the magic lotus lantern and had San Sheng Mu weighed down under the Huashan Mountain. Fortunately, Chen Xiang was rescued by the God of Thunder, who taught him martial art. Chen Xiang finally got his mother back by cleaving through the Huashan Mountain. The family was reunited at last.

The Magic Lotus Lantern has six acts, namely, "Leaving Heaven and Falling in Love", "Chen Xiang at one Hundred Days", "Practicing Martial Arts in the Deep Mountains", "Father Meeting Son", "Fighting the Dragon to Get the Axe" and "Saving Mother by Cleaving Through the Mountain".

Centering on the theme of San Sheng Mu's yearning for love and a peaceful life on earth, the dance drama successfully created six different characters by fully displaying the art of dance. Further improvements were made on traditional opera-style dance, which was displayed in such high-skilled performances as San Sheng Mu's long silk gown, Liu Yanchang's long sleeves, the God of Thunder's horsetail whisk (a Taoist instrument), as well as the body movements of Erlang Shen and the deified dog. In the act "Chen Xiang at One Hundred Days", a happy atmosphere impressed the audience a great deal with some of the colorful traditional dancing styles of the Han nationality. They are characterized by the employment of such instruments as the fan, handkerchief, and Lian Xiang (a long stick that can make a sound), as well as the Datou Wu (mask).

The Magic Lotus Lantern was a pioneer in the development of Chinese dance drama, with its influence spreading to both domestic and international dance stages. In 1959, The Magic Lotus Lantern was made into an art film and was highly acclaimed. It was nominated to the Dance Classics of the Chinese Nation in the 20th Century.