The restorative justice movement of recent decades has largely developed in Western countries (Van Ness 2002). The present study examines the Chinese Confucian traditional philosophy and legal cultural values that are compatible with the philosophy and principles of restorative justice and analyzes the specific principles of the Confucian traditional legal culture that were conducive to restorative justice practices. It explicates several major Chinese contemporary programs and practices which are compatible with modern restorative justice and explains how the Chinese Confucian traditional legal cultural principles continue to influence criminal justice policy within the context of contemporary Chinese criminal justice reforms. The study suggests that unlike the typical Western restorative justice movement, which is a response to the problems of justice system, the main impetus for the development of China’s restorative justice is its Confucian traditional legal culture.