Dà Hóng Páo is a very important Wuyi Oolong tea. Legend has it that the mother of a Tang Dynasty emperor was cured of an illness by a certain tea, and that emperor sent great red robes to clothe the four bushes from which that tea originated. These original bushes, growing on a rock on Mount Wuyi, still survive today and are highly venerated. Less than one kilogram of tea is harvested from these plants each year. This original and real Da Hong Pao can fetch millions of dollars per kilogram. Cuttings taken from the original plants have been used to produce similar grades of tea from genetically identical plants. Taste variations produced by processing, differences in the soil, and location of these later generation plants is used to grade the quality of various Da Hong Pao teas.

Xiao Hong Pao, or Small Red Robe refers to Da Hong Pao grown from third or more generation plants but the term is rarely used.

As it's of very high quality, the Da Hong Pao is usually reserved for honored guests.