Although most of the present day buildings date from later reconstructions, the temple preserves the architectural design of a Song dynasty (960–1279) monastery of the Chan School.
According to a legend, Sun Quan, King of the Kingdom of Wu (222–280), had obtained Sharira relics, which are cremated remains of the Buddha.
Like the function of the pagoda, the name of the temple also has its origin in a local legend according to which a dragon once appeared on the site.
(According to another version of the story, as contained in Song (960–1279) and Yuan dynasty (1271–1368) local histories, the temple was first built by the King of Wuyue.)
Viewing of the peach blossom in the Longhua gardens was an annual attraction for people in surrounding cities.
During the Second Sino-Japanese War, the Japanese operated their largest civilian internment camp in the area, where American, British, as well as nationals of other allied countries were held under poor conditions.
The layout of the temple is that of a Song dynasty monastery of the Buddhist Chan sect, known as the Sangharama Five-Hall Style.
At the back of the hall is a bas-relief carving, including a depiction of Guanyin, or the Bodhisattva Avalokiteśvara in his female manifestation.
Around the front portion are arranged the twenty Guardians of Buddhist Law, and around the back the sixteen principal arhats.
The Three Sages Hall (三聖殿) houses statues of the Amitabha buddha, and the Bodhisattvas Avalokiteśvara (male form) and Mahāsthāmaprāpta.
Since its inception, the fair has been an annual event interrupted only by the Cultural Revolution and the SARS outbreak.
J. G. Ballard in his World War II-era autobiographical novel Empire of the Sun describes the Japanese military use of the Longhua pagoda as a flak cannon tower.