Taoism regards The Three Purities (the Supreme Pure One, the Jade Pure One and the Grand Pure One) as the highest powers in the Taoist pantheon. Ever since the appearance of Zhang Daoling in the later Eastern Han Dynasty, the Ancestral Deities of Taoism was the main deity being worshipped in all Taoist schools and sects. Taoism is subdivided into the branches of “Philosophical Taoism” and “Religious Taoism”. Initially, Yu Xu Palace was categorised under the branch of Philosophical Taoism. Still, after the religion was brought into Singapore, it took Religious Taoism as its fundamental belief and Philosophical Taoism as the path to attaining the highest state of spiritual enlightenment.

Deities worshipped in traditional Taoism were San Qing Si Yu, and Wu Lao Qi Zhen. However, Yu Xu Palace came under the instructions of the Three Saints, The Three Purities and Twelve Ultimate Deities, with the Twelve Ultimate Deities as the main deities of worship. The Three Purities worshipped in Yu Xu Palace are namely Heavenly Worthy of the Primordial Beginning (Yuan Shi Da Tian Zun), Grand Supreme Elder Lord (Tai Shang Lao Zu) and Tong Tian Jiao Zhu. Yu Xu Palace also practices the twelve bows and twenty-four kneels instead of the classical three kneels and nine kowtows.