The pagoda, located in Caotang Temple in Huxian County 30 kilometers southwest of Xian City, was built for keeping the remains of Kumarajiva, an eminent monk in the Later Qin Dynasty. 

Kumarajiva (344-413), born in what is today the Kucha area in northwest China's Xinjiang Uygur Autonomous Region, translated 35 Buddhist Scriptures, or 294 volumes, from Sanskrit into Chinese. His translation of Buddhist scriptures helped the Mahayana Buddhism to take root in China. 
 
During the Tang Dynasty (618-907), a 2.3-meter tall dagoba was built for him at the Caotang Temple where Kumarajiva used to teach and is at rest.

The pagoda has a special structure. Although a pavilion-style pagoda, it has a base in the shape of mountains and waves and its Sumeru pedestal is carved with designs of waves. Its surbase, in the shape of a lotus flower carved with designs of waves, supports the octagonal pavilion-style main body. A door and windows with straight lattices are sculptured on its sides. The roof is formed by four square sections, and under the eaves are skillfully engraved, vivid images of flying apsarases. The pagoda's steeple also has its own unique style. The plain base is carved into huge petals of lotuslike flowers for supporting a huge oblate bead. 

The whole structure of the pagoda and its carvings are vigorous and graceful The pagodas main body is carved from jade of eight colours -- white, greenish, black, bright yellow, reddish, light blue, purple and dark gray -- hence it is also known as the Eight-Color Jade Pagoda.