The creation of Baguazhang, as a formalised martial art, is attributed to Dong Haichuan in the early 19th century, who apparently learned from Taoist, and possibly Buddhist, masters in the mountains of rural China.There is evidence to suggest a synthesis of several pre-existing martial arts taught and practised in the region in which he lived, combined with Taoist circle walking. Dong Haichuan taught for many years in Beijing, eventually earning patronage by the Imperial court.

Famous disciples of Dong to become teachers were Yin Fu, Cheng Tinghua, Song Changrong, Liu Fengchun, Ma Weiqi, Liang Zhenpu and Liu Dekuan . Although they were all students of the same teacher, their methods of training and expressions of palm techniques differed.[4] The Cheng and Liu styles are said to specialize in "Pushing" the palms, Yin style is known for "Threading" the palms, Song's followers practice "Plum Flower" ( Mei Hua) palm technique and Ma style palms are known as "Hammers." Some of Dong Haichuan's students, including Cheng Tinghua, participated in the Boxer Rebellion. In general, most Bagua practitioners practice either the Yin , Cheng, or Liang styles of Baguazhang, although Fan , Shi, Liu, Fu , and other styles also exist. (The Liu style is a special case, in that it is rarely practiced alone, but as a complement to other styles.)