The park is located between the western segment of the Third Ring Road and Diaoyutai State Guesthouse.

Yuyuantan Lake was first created during the Qing dynasty when the Qianlong Emperor was the ruler.

In 1773, springs from Fragrant Hills were introduced into the low land and impounded to be a lake.

In 1960, the Beijing government introduced water from the Yongding River into the lake and made it revived.

Now, Yuyuantan Park has become a well-known place to view cherry blossoms in China.