The origin of the Chinese dragon is not certain, but many scholars agree that it originated from totems of different tribes in China. Some have suggested that it comes from a stylized depiction of existing animals, such as snakes, fish, or crocodiles. For example, the Banpo site of the Yangshao culture in Shaanxi featured an elongated, snake-like fish motif. Archaeologists believe the "long fish" to have evolved into images of the Chinese dragon. The association with fish is reflected in the legend of a carp that saw the top of a mountain and decided he was going to reach it. He swam upstream, climbing rapids and waterfalls letting nothing get in the way of his determination. When he reached the top there was the mythical "Dragon Gate" and when he jumped over he became a dragon. Several waterfalls and cataracts in China are believed to be the location of the Dragon Gate. This legend is used as an allegory for the drive and effort needed to overcome obstacles and achieve success.

An alternative view, advocated by He Xin, is that the early dragon depicted a species of crocodile. Specifically, Crocodylus porosus, an ancient, giant crocodile. The crocodile is known to be able to accurately sense changes in air pressure, and be able to sense coming rain. This may have been the origin of the dragon's mythical attributes in controlling the weather, especially the rain. In addition, there is evidence of crocodile worship in ancient Babylonian, Indian, and Mayan civilizations. The association with the crocodile is also supported by the view in ancient times that large crocodiles are a variety of dragon. For example, in the Story of Zhou Chu, about the life of a Jin Dynasty warrior, he is said to have killed a "dragon" that infested the waters of his home village, which appears to have been a crocodile.

Others have proposed that its shape is the merger of totems of various tribes as the result of the merger of tribes. The coiled snake or dragon form played an important role in early Chinese culture. Legendary figures like Nüwa, Fuxi are depicted as having snake bodies. Some scholars report that the first legendary Emperor of China Huang Di (Yellow Emperor) used a snake for his coat of arms. Every time he conquered another tribe, he incorporated his defeated enemy's emblem into his own. That explains why the dragon appears to have features of various animals.

There is no apparent connection to the western dragon.