Fayu Monastery is the second of Putuo's great monasteries, built into the hillside in the northern part of the island with courtyards that rise in stone-paved steps through a series of halls. The setting is more secluded than Puji and the buildings more intimate — the whole complex nestles into the hillside rather than sitting in an open garden, and the forest presses close on three sides. The monastery was founded in the late Ming dynasty and extensively rebuilt in the Qing; much of the current architecture dates from the seventeenth and eighteenth centuries.
The walk from Puji Monastery to Fayu on the forest path takes about thirty minutes and passes several smaller shrines and stone inscriptions carved into rock faces. This is one of the island's most pleasant walks, with pine trees providing shade and the sounds of the sea occasionally audible through the trees. The path is well-maintained and clearly marked.