Dayuling's surrounding area is known for its high-altitude agriculture, producing high-mountain tea, apples, and peaches.

[3][4] Originally, a trail was built by the Atayal people passed near Dayuling.

During the Japanese occupation of Taiwan, the Governor-General of Taiwan, Sakuma Samata, ordered the construction of a road through the same trail as part of the five years plan to governing aborigines to better transport supplies in the Truku War.

[5] After the change of power to the Kuomintang, the Nationalist government began building the Central Cross-Island Highway between 1956 and 1960.

Due to the foliation of the rock, the construction of Hehuanshan Tunnel at Dayuling proved to be difficult and prone to collapse.