The Alchemical Cave is located on Anqi Peak of Peach Blossom Island, at an altitude of approximately 482 meters. It is said that Anqi Sheng, in order to avoid the tyranny of the Qin Dynasty, secluded himself in this natural stone cave on Anqi Peak to cultivate Taoism and practice alchemy, becoming a revered sage by later generations.
During the Yuan Dynasty, the literary figure Wu Lai (1327) visited Peach Blossom Mountain in the autumn and sought out Anqi Sheng, inspecting the remains of the Alchemical Cave, leaving behind the verse ‘The alchemy cauldron remains, known to woodcutters still’.