This term refers to the universal principle that governs all things. The ancient Chinese believed that things are all governed by their own underlying principles. This term refers to the intrinsic nature of objects and humans; and it also refers to patterns that govern both the movements of things as well as the words and actions of humans. For some scholars, the focus was on how different things are governed by different principles, so that these principles represent their diversity. Others, however, believed that even though principles governing different things vary, ultimately they are the same in nature, making the universal principle governing everything.

All things have different patterns, and dao encompasses all of them. Therefore, dao has to change as things change. (Hanfeizi)

The universal principle can be found because there is only one such principle that governs all things. Every object, no matter how small, is ultimately governed by such a principle. (Writings of the Cheng Brothers)