The Dayan Pagoda is located in the Da Ci'en Temple in the southern part of the city. The Da Ci'en Temple was a magnificent royal temple in Chang'an during the Tang Dynasty. It was built during the reign of Emperor Taizong of the Tang Dynasty by Crown Prince Li Zhi in memory of his mother, Empress Wende, and was first abboted by Master Xuanzang, who had returned from his journey to the West to seek Buddhist scriptures. During this period, the master supervised the construction of the Dayan Pagoda.

Master Xuanzang translated Buddhist scriptures and promoted Buddhism in Da Ci'en Temple for 11 years, and founded the "Appearance-Only School" of Buddhism, making Da Ci'en Temple the ancestral temple of the Appearance-Only School (also known as the "Faxiang School"). During this period, the master personally supervised the construction of the Dayan Pagoda to enshrine the scriptures, statues and relics brought back from India.

The current Da Ci'en Temple was built in the Ming Dynasty on the basis of the original temple "West Pagoda Courtyard", and most of the existing halls are buildings from the Qing Dynasty. The main buildings on the central axis of the temple are the Great Hall, the Dharma Hall, the Dayan Pagoda, and the Xuanzang Tripitaka Courtyard. Among them, the Buddha's relics enshrined in the Dayan Pagoda and the parietal bones of Master Xuanzang are respectively enshrined in the Xuanzang Tripitaka Courtyard, which are the "treasures of the temple" of Da Ci'en Temple.

To the east of the central axis of the temple is the Pagoda Garden. Within the garden are nine stupas housing the relics of nine eminent monks of the temple since the Qing Dynasty.

There are squares to the south and north of Da Ci'en Temple. There are also Shaanxi Museum and Tang Paradise Souvenir .