Liulangzhuang is a 600-year-old place name outside the East Gate of the Summer Palace.

Liulangzhuang was originally named "Niulanzhuang". According to the textual research of Old News of the Sun, in the second year of Yongle in Ming Dynasty (1404), Beijing officials reported to Emperor Yongle that Niulanzhuang, Huajia and Wengshan to the east of West Lake were flooded 160 feet.

The West Lake is now Kunming Lake, Wengshan is now Wanshou Mountain in the Summer Palace, Niulan Village is later said to be Liulang Village where Yang Liulang lived during the anti-Liao period, and later it is Guajiatun where Yang Liulang hangs armor.

According to legend, when Empress Dowager Cixi went to the Summer Palace for amusement, she heard that the village outside the park was called Liulangzhuang. She was very dissatisfied and ordered to change its name to "Jixiang Zhuang". Because Cixi is a sheep, it is unlucky to think that Liulangzhuang is homophonic "Liulangzhuang".

There used to be a Zhenwu Temple in Liulangzhuang, which was supervised by Cao Xueqin's grandfather Cao Yin.