Lao-Tzu's philosophy is known as Taoism, which is derived from the Chinese word 'Tao' meaning 'WAY' or 'PATH'. Taoism is a philosophical and religious tradition that emphasizes living in harmony with the Tao, which is the source of all existence. Taoism is based on the teachings of Lao-Tzu, an ancient Chinese philosopher who wrote the Tao Te Ching, a book of wisdom and guidance. Taoism encourages people to live in harmony with nature and to accept the natural flow of life. It also emphasizes the importance of balance and moderation in all aspects of life.