Wudang kungfu is one of the many Taoist theories that originate in Lao Zi's Dao De Jing (The Book of the Way and Its Virtue). Its movements combine martial arts with the concept of spiritual self-cultivation, and follow the circular orbit of tai chi. Its martial theories, for example, that, "The motionless overcomes that in motion"; "The soft overcomes the hard"; and "Motionless I remain when my opponent stays still; and my reactions quicken when my opponent starts to move" - tally with Lao Zi's fundamental teaching in the Dao De Jing that "The softest overcomes the hardest in the universe." It is said that on one occasion Zhang Sanfeng observed a bird attacking a snake on Wudang Mountain and was greatly inspired by the snake's defensive tactics. It remained still and alert in face of the bird's onslaughts until making a lunge and fatally biting its attacker. This battle inspired him to create a 72-movement Taichi boxing "set." Many of the Wudang exercises and movements are named after animals, for example, Eagle and Snake Taichi Boxing, and the Wild Horse, Black Tiger, White Monkey and White Snake movements.

In addition to its diverse boxing styles, Wudang kungfu encompasses many meditative exercises, such as the Eye-Brightening, Blood Circulation-Invigorating, Secret Five-Form, and Three Heavenly Gates Enlightenment kungfu. There are also exercises in which weapons, such as the Eight Immortals Sword and the Eight Immortals Cudgel, are used. The horsetail whisk often carried by Taoist monks is one of an arsenal of Wudang kungfu secret weapons.

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