The concept of Tao occupies a core position in Taoism and even the entire Chinese classical philosophy. For philosophical Taoism, 'Tao' is the ultimate reality. Therefore, exploring Taoist epistemology, its role in governance, education and self-cultivation is necessary. The only way that can be approached beyond human ability to fathom 'Tao' is beyond mere reasoning or words. Thus, the basic guiding principles behind Taoism for approaching Tao are 'no action' and 'no words'. In traditional Chinese philosophy, following Tao to cultivate oneself is teaching, so as Taoism advocates the teaching of non-action beyond words. The educational thought of Taoist also strongly dismisses the notion of 'learning', which is at odds with the Confucians and majority of Westerns. However, Taoism does not negate the importance of learning to attain knowledge, while only opposes the so-called knowledge that is cumbersome, limited, rigid and antagonistic. According to the Taoist thought, children like all human beings are guided naturally and attain fulfillment in harmony with the rest of the world. Enlightenment is a continual and constant process that can be attained by gradual self-transformation until the Tao is realized. Teaching without words seems to be a negative method, while it actually possesses significance. Excessive addiction to knowledge and efficiency drifts modern education away from Taoism. Excavating the educational significance of Taoist ancient philosophical heritage can facilitate us understanding the true nature of education.