Cave 3 at the Yulin Grottoes was constructed in the late middle Western Xia Dynasty. The unique format in architectural structure and richness in contents especially the delicate wall paintings contribute to its high significance in Dunhuang Grottoes group.

The 51-faced Guanyin Bodhisattva (Bodhisattva of Mercy) with thousand hands and thousand eyes is illustrated on the south side of the east wall. The whole depiction is 3.7m high and 2.2m wide, taking up an area of 8.14 square meters. The image of Guanyin presents fifty-one faces in such an overlapping arrangement in ten layers as a pagoda. Thousand eyes and thousand hands here indicate very many eyes and hands instead of specific number. Thousand hands suggest limitless supernatural power; thousand eyes, endless wisdom. Many utensils are depicted to symbolize Guanyin's hands. Totally 166 kinds of utensils are represented in the scene, which are in symmetrical distribution on both sides of Guanyin Bodhisattva. Amongst, 41 utensils in hands are depicted according to sutra, while the others according to living scenes in the Western Xia Dynasty, such as human figures, animals, plants, architectures, vehicles, productive implements, musical instruments, measures, weapons, and other Buddhist instruments.

The most realistic depictions in the whole illustration are scenes of cattle-ploughing tiller, iron smith, and brewers, which reflect the production and living realities of the Western Xia society.

The illustration of the 51-faced Guanyin Bodhisattva with thousand hands and thousand eyes in cave 3 at Yulin is comprehensive, most richly endowed and unparalleled among all illustrations of sutras. Its surpassing Buddhist iconographic rituals not only displays the creation of the Western Xia painters but also manifests the valuable historical and artistic significances. Moreover, the whole image is painted in cold and simple color, similar to line drawing portrait.

The north side of the west wall represents an illustration of Manjusri Bodhisattva, which is a representative painting of its kind in Dunhuang Grottoes in terms of either painting skills or artistic value, reflecting the Buddhist artistic attainment of the Western Xia period.

Far behind the image of Manjusri is a mountainous landscape, which represents Mountain Qingliang (Mountain Cool) or Mountain Wutai in legend where Manjusri practices Buddhist rituals, as according to Huayan Sutra. In the landscape, grotesque ridges and peaks stand out amidst thin mist halfway, age-old temples are half visible from dingles and rainbow, and a ray of auspicious light is shining from a cave out of the mountain, all looks mystical and tranquil. Grand mountains and water represent the highest attainment of landscape painting during this period. Besides, the composition of the whole landscape painting employs scattering perspective method, which is traditional of Chinese painting. Human figures and scenes from different angles are naturally displayed in the same plane and space; it is true that a few inches of picture highlight the scenes of a thousand miles.

In the aspect of painting technique, configurative function and artistic effect of line drawing are emphasised for the whole depiction. Coloring is simple and concise, multiple coloring is slightly used, while line drawing on plain white grounding are highlighted, producing an effect of magnificence out of elegant coolness. Line drawing techniques employed in this illustration include iron-hard line to produce full and flexible figure; twisted-reed line to represent angular folding of garments; orchid-leaf line which is stretching and rich in variety; flowing-water line which looks silkily smooth and delicate; and gossamer line to depict raising and flying of hair. All the diverse lines are clear and fluent, contributing to a masterpiece of ancient mountainous landscape painting.

Cave 2 of the Yulin Grottoes, located at the lower layer of the eastern cliff, was constructed during the Western Xia Dynasty (from 11th to 13th century). This cave assumed the format of an inverted dipper ceiling which was predominant since the Tang Dynasty. Wall paintings in this cave are original, yet the statues on the central Buddhist altar were renovated during Qing Dynasty, including the statue of Manjusri Bodhisattva ridding a green lion.

The inverted dipper ceiling was painted with a whirling dragon design, which is creative in configuration and painting skill. The north and the south walls present preaching scenes. A well painted image of Water-Moon Bodhisattva is preserved on each side of the entrance at the west wall, each is of high artistic attainment and superior quality among its kind.

Totally 27 images of Water-Moon Bodhisattva painted during the Five Dynasties, Song and Western Xia period are preserved at Mogao Grottoes in Dunhuang, Yulin Grottoes at Anxi, the Eastern Thousand-Buddha Caves and the Five Temples at Subei, they occupy an important position in the grottoes art in Dunhuang during its late period. Water-Moon Bodhisattva is one of the thirty-three reincarnations of Bodhisattva, who is painted as viewing in tranquillity the moon in water, thus the name comes. Water-Moon Bodhisattva was created by Zhou Fang, a palace painting artist in the middle Tang period; its popularity attributes to not only its newness but also to the saying that those who provide offerings to Water-Moon Bodhisattva would be relieved from hardships and misfortunes.

The image of Water-Moon Bodhisattva on the north wall is painted sitting freely on a ratna throne in misty moonlight, looking as if an elegant rich lady. Beside are mountains and rocks and bamboos. The Bodhisattva is vestured by a transparent aura, with her head up, looking at the crescent moon sheltered from clouds. Water is running before her, from which lotus flowers are blossoming. The scene presents that the Bodhisattva seems to be immersed in her far thought at such a tranquil moony night, while she also looks like listening to the misfortunes of the worldly people and ready to release their suffering souls from their hardships. To the right side of the scene is painted with a lovely and naive boy who is riding on clouds to come to show his pilgrimage to the Bodhisattva, to its right below presents a scene of the well-known western pilgrimage of the eminent monk of Tang Dynasty.

The main tone of the whole scene is fresh and elegant mineral green. While the image of Water-Moon Bodhisattva on the other side of the wall is quite distinct with its decorative rocks, application of verdant color and clouds, which are arranged in symmetry and unification. The approach to landscape painting embodies the artistic features of that in the Southern Song Dynasty.

On this wall paintings of the High Tang Dynasty, you can see two pairs of apsaras (flying figures) scattering flower petals and chasing each other, the latter apsaras respond to the former ones, their figures are elegant. They are paragons of the flying figures at Mogao Grottoes. The picture is dynamic with the flying figures and floating clouds.

It is the largest cave with a central column among the caves of the early period. In the front is an inverted V-shaped ceiling. The wall paintings in this cave illustrates a preaching scene and illustration of Mara Vijaya Sutra on the north wall; the vajra pagoda, nirvana sutra, Sakya and Prabhutaratna Buddha sitting side by side on the west wall; preaching scene and Rocona or Illuminating Buddha on the south wall; and outstanding painting of Buddha's jataka tales on the east wall, including sattva jataka on the south side of the east wall and prince jataka on the north side. Both jataka tales are painted in three horizontal strips, and drawing is concise and style realistic. The patternized mountains and trees present both background for the stories and decorative effect. This cave, containing over 1,000 portraits of donors, has the most donors among the Dunhuang Grottoes group, which evidences that it was probably the monks and Bhiksunies of local temples that patronized this cave.

This cave has an inverted dipper shaped ceiling. The ceiling and four walls show miniature Buddhas repainted during the Western Xia. The statues in this cave, of fine artistry, are masterpieces of the Tang Dynasty statues. In the middle of the group of statues is a preaching Buddha who looks sublime and solemn, natural and magnanimous, and resplendent with detailed fine treatment of the folds of his robe, Buddhist halos and his seat. Two statues of Bodhisattvas, cast in casual sitting poses, look graceful, natural, plump, lustrous, and figures soft and elegant, representing their wisdom and depth. The statue of Ananda was cast in gaudery robe, standing slightly to a side, both hands in sleeves, head raising high as if listening to preaching, and assuming a free and complacent expression, representing an exalted lad. While, the statue of Kasyapa presents a bony, seasoned and discreet old man, with both eyebrows in frowning. The attendant Bodhisattvas on both sides look tranquil and devotional, each with a knee bended.