Penglai has long been known as "Fairyland": As the place of origin of powerful elixirs and the home of immortals. Penglai is also regarded as one of the three mythological mountains together with Yingzhou and Fangzhang. Almost all Chinese people know the myth of "Eight Immortals Crossing the Sea" which is said to have originated here. According to the myth, the Eight Immortals, after having been drinking at the Penglai Pavilion, crossed the sea through their supernatural powers and finally reached Japan.

Penglai is among the "Four ancient Chinese ports" of the Tang Dynasty (618-907AD). The other three are Quanzhou, Yangzhou and Ningbo. It is most famous for the 1,000 year old Penglai Pavilion perching on the cliff top overlooking the sea. The fascinating complex is the ideal place for a view of the immense sea, and is also the best place for the famous "Penglai mirages".