Miao Chuang, a minor king in the southern provinces of China, had three beautiful daughters, but no son. Each daughter's duty was to marry a good man, so the dynasty could be carried on after the king died. The two older ones did what was expected of them. Miao Shan, the youngest and most beautiful, refused to get married. She wanted to become a nun and spend her life helping the unfortunate. Her father tried everything, but she remained resolute. Exasperated, he declared she would be put to death for disobedience to the throne. On hearing this, the gods sent the Immortal Protector, the Tiger, to rescue Miao Shan, and she rode on his back to the Yellow Mountains. There, she dedicated herself to studying the scriptures of Buddha and leading a pure life.

One day, she heard that her father, the king, was very ill. Nothing could cure him. She prayed to the gods for a miracle, and was told that, only if she found someone with a pure heart, who would sacrifcie his right eye and hand, she could make a potion, which would cure her father. Being the dutiful daughter that she was, she made the ultimate sacrifice, brewed the potion, disguised herself as a beggar monk and traveled to her father's bedside. There, she administered the magical brew. Miraculously, Miao Shan recovered. He asked to know who his benefactor was, so he could go to the temple and offer thanks to the gods in his name. When Miao Shan revealed her true identity, her father was so ashamed of how he had treated her, he spent the rest of his life doing good deeds, in atonement of his sins. And the gods were so pleased with Miao Shan's filial devotion, they restored her hand and eye, and they made her a goddess. She comes to be known to us today as Kwan Yin, Goddess of Mercy.