The Heshang Gong commentary to the Laozi, likely a work of the Later Han period, played a critical role in shaping Laozi learning in pre-modern China. This chapter seeks to delineate the interpretive approach and logic of its reading of the Laozi. Grounded in a basic understanding of the world as being constituted by vital qi, it shows how the Laozi offers a coherent and powerful vision of the Dao and its full realization in both self-cultivation and political governance. Key concepts in the Laozi such as emptiness, the “One,” and naturalness and nonaction find their place in this interpretive framework.