Dayuling is located at the altitude of 2, 565m on the saddle of Central Mountain Range’s main ridge between Mt. Hehuan and Mt. Bilu. It is the middle point of the Central Cross-Island Highway and directly on the intersection of Taichung City, Nantou County, and Hualien County.

The highway diverges into three directions here: towards Mt. Hehuan, to Lishan, and to Taroko National Park. Dayuling was once famous for being the center of commodity distribution. In earlier days, many farmers lived on both sides of the road, selling alpine vegetables and fruits. Under green mountains and white clouds, were the humble trading people and bustling rural markets. Now, due to the increasing awareness of environmental protection and different government policies, the majority of shops are no more.

On the way from Dayuling to Mt. Hehuan, the vegetation gradually presents its alpine characteristics. Due to the impact of forest fires, the forest on sun exposed slopes is mainly comprised of Taiwan red pine, while other plants are often short in stature and growing season. The survival of the latter species is often determined in one period of reproduction, which often vibrantly colors the warmest part of summer.