The Chinese character 道 (pinyin Dào, Wade–Giles Tao4) "Way".

Taoism (sometimes written as and actually pronounced as Daoism (dow-ism)) is the English name for: Dao Jia (philosophical tao) philosophical school based on the texts the Tao Te Ching (ascribed to Laozi (Lao Tzu) and alternately spelled Dào Dé Jīng) and the Zhuangzi; a family of organized Chinese religious movements such as the Zhengyi ("Orthodoxy") or Quanzhen ("complete reality") sects, which collectively trace back to Zhang Daoling in the late Han dynasty; and a Chinese folk religion.

The English word "Taoism" is used to translate the Chinese terms Daojiao (道教 "teachings/religion of the Dao") and Daojia (道家 "school of the Dao"). The character Tao 道 (or Dao, depending on the romanisation scheme) means "path" or "way", but in Chinese religion and philosophy it has taken on more abstract meanings. The compound Daojiao refers to Daoism as a religion; Daojia refers to the activity of scholars in their studies. It must be noted that this distinction is itself controversial and fraught with hermeneutic difficulty. Many scholars believe that there is no distinction between Daojia and Daojiao, and that the distinction is propagated by people who are not familiar with Taoism.