Along with T'ai Chi Ch'üan and Xíngyìquán, Baguazhang is one of the three major internal Chinese martial arts.

Baguazhang  literally means "eight trigram palm," referring to the trigrams of the Yijing, one of the canons of Taoism. In some styles of Baguazhang these trigrams can refer to eight animals, upon which movements in those fighting systems are based.

The practice of circle walking is bagua's characteristic method of stance and movement training. Practitioners walk around the edge of a circle in a low stance, facing the center and periodically changing direction as they execute forms. Students first learn flexibility through such exercises, then move on to more complex forms and internal power mechanics. The internal aspects of bagua are very similar to those of xingyi and tai chi. Eventually, many distinctive styles of weapons training are practiced, sometimes including the uniquely crescent-shaped deerhorn knives, and the easily concealed "scholar's pen." Baguazhang is also known for sometimes practicing with extremely large weapons, such as the Bāguàdāo , or 'Bagua Broadsword.' In many schools, students study both xingyi and bagua. These may be used together in fighting, as they are often complementary. Bagua contains an extremely wide variety of techniques, including various strikes, low kicks, joint techniques, throws, and distinctively circular footwork.

The creation of Ba Gua Zhang, as a formalised martial art, is attributed to Dong Haichuan  in the early 19th century, who apparently learned from Daoist, and possibly Buddhist, masters in the mountains of rural China. There is evidence to suggest a synthesis of several pre-existing martial arts taught and practiced in the region he lived in, combined with Taoist circle walking. Dong Haichuan taught for many years in Beijing, eventually earning patronage by the Imperial court. Famous disciples of Dong to become teachers were Yin Fu , Cheng Tinghua , Song Changrong , Liu Fengchun  and Ma Weiqi . Although they were all students of the same teacher, their methods of training and expressions of palm techniques differed. The Cheng and Liu styles are said to specialize in "Pushing" the palms, Yin style is known for "Threading" the palms, Song's followers practice "Plum Flower" ( Mei Hua) palm technique and Ma style palms are known as "Hammers." Some of Dong Haichuan's students, including Cheng Tinghua, participated in the Boxer Rebellion. In general, most Bagua practitioners practice either the Yin , Cheng , or Liang styles of Bagua, although Fan , Shi , Liu , and other styles also exist. (The Liu style is a special case, in that it is never practiced alone, but as a complement to other styles.)

Of all of Dong Haichuan's students, Yin Fu studied with him the longest. Yin Fu had multiple students, of them Men Baozhen taught Xie Peiqi. In An Interview with Xie Peiqi, dated to 1999, Xie stated that his teacher, Men Baozhen, was considered to be the third best pupil of Yin Fu, after "Wan Tong" Li and Ma Gui (Yin's oldest disciple). Dr. Xie died in 2003 and his top student, He Jinbao, is now teaching the system.

Another famous Bagua practitioner of the 20th century was Sun Lutang , who studied Baguazhang under Cheng Tinghua. Sun was also a Xingyiquan disciple of Guo Yunshen  and learned Wu/Hao style Taijiquan from Hao Wei-chen. Sun Lutang was reputed among the Taijiquan professionals of his day to have excelled in his studies and subsequently became well known as the founder of Sun style Taijiquan.

Few good teachers of Baguazhang are available in the United States, and many do not advertise. Many are conservative and in line with Confucian didactic tradition will only reveal internal practices to dedicated students. Known forms (routines) of Bagua Zhang include Fixed Form Eight Palms , and the Old Eight Palms  form, as well as many others.