Luodian lanterns have been in Luodian for hundreds of years. It started as a kind of paper-rolling art used by our ancestors as sacrifice paper to mourn the dead. This kind of handicraft developed and evolved into lanterns, a more sophisticated art form.

Luodian lanterns are often made into vivid shapes of animals, plants, and figures, making charming displays at every place on the water, on the land and in the air.

In the past, Luodian lanterns have been kept as a kind of folk custom. The Lantern Festival, which falls on the 15th day of the first lunar month, marks the climax as almost every household hang out their lanterns. The rich and wealthy families wanted their lanterns to be beautiful and grand, to flaunt their wealth, thus pushing the development of Luodian lanterns to a more refined and elegant level.

Since China started its reform and opening up, the Luodian Town government started to rejuvenate folk art in an aim to revitalize the ancient town's glory. It held the Luodian Annual Conference in 1982, when the lantern exhibition was one of the highlights. In 1984, a colorful lantern festival using Luodian lanterns was held in Hongkou Park, which was widely well-received. Luodian lanterns also made its way across the oceans to Western Europe for international folk art exhibitions, thus the influence of Luodian lanterns was further expanded. During the Shanghai Baoshan International Folk Art Festival, the lotus lanterns from Luodian left a deep impression on the visitors.