Amidst this turmoil, the Yellow Turban Rebellion erupted in 184 CE. This peasant uprising, fueled by economic hardship and social injustice, posed a significant threat to the Han Dynasty's rule. The rebellion was led by Zhang Jue and his brothers, who were followers of a Taoist sect promising a golden age of ‘Great Peace’ (Taiping). The revolt rapidly spread across the country, exacerbating the dynasty's weaknesses. The rebellion, which got its name from the colour of the cloths that the rebels wore on their heads, marked an important point in the history of Taoism due to the rebels' association with secret Taoist societies.

In response to the Yellow Turban Rebellion, local warlords and military leaders rose to prominence. Among them were notable figures such as Cao Cao, Liu Bei, and Sun Jian, who would later become the founding figures of the Three Kingdoms. These leaders were initially tasked with suppressing the rebellion, but their military successes granted them significant power and autonomy, setting the stage for the fragmentation of the Han Dynasty.