Liulichang is known for its ancient books, calligraphy, paintings, rubbings, ink stones and ink. The street, which is only 750 meters long, is located south of Hepingmen (Peace) Gate within walking distance of the Hepingmen Quanjude Peking Duck Restaurant.

During the time of Yuan Dynasty (1271-1368) and Ming Dynasty (1368-1644), a colored glaze factory (Liuli Chang in Chinese) was in production there, which made glazed tiles for the palaces, temples and residences of the officials, hence the name “Liulichang.”

In the Ming and Qing (1644-1911) times, Liulichang was a favorite haunt for scholars, painters and calligraphers that gathered there to write, compile and purchase books, as well as to paint and compose poetry. By the Kangxi period (1661-1722), Liulichang had become a flourishing cultural center and was described as having "homes and buildings lined up like fish scales." During the Qianlong period (1736-1796), the street was even more prosperous. When Emperor Qianlong decided to revise the Complete Library of the Four Branches of Literature, he ordered scholars from the project, and Liulichang became a center for research in textual criticism.

In 1927, when Hepingmen (Peace) Gate was opened up in the city wall, the bridge was demolished and Nanxinhua Road was built, dividing Liulichang into eastern and western sections. The east became known as a center for antiques and curious, while the west was famous for its books. Shanghai Commercial Press, China Publishing House and Youzheng Press, which published books of Chinese calligraphy, all established branches here.

In 1950, the Government passed laws to prohibit the export of valuable antiques and books. The Palace Museum and the Museum of Chinese History bought up all important historical artifacts, paintings, calligraphy and other works of art that had been scattered among Liulichang's shops.

In the 1980s, the street was renovated and various specialized shops were rebuilt. With brightly painted doors and eaves and gracefully curved black-tile-roofs buildings, a little of old Beijing's lifestyle retained here.