This little island located in the middle of the lake is considered to be the home of the Thao ancestral spirits. Floating docks and fields surround the island in the shape of the Eight Diagrams.
In October of 1978, the Nantou County Government set up a “Matchmaker Pavilion” on Guanghua Island. Visitors to the island used to come here to worship the “Matchmaker god” and make requests concerning marriage. A “Shueishang Group Wedding” would take place before the “Matchmaker Pavilion”. Many young couples would participate in this wedding ceremony. Due to the 921 Earthquake of 1999, the “Matchmaker god” was relocated to the nearby Dragon-Phoenix (Longfong) Temple.
After the 921 Earthquake of 1999, out of respect for the Thao Aboriginals, the Nantou County Government changed the island's name from “Guanghua Island” to “Lalu Island”. The Tourism Bureau's Sun Moon Lake National Scenic Area Administration mapped out this island to be the ancestral-spirit island of the Thao, and on October 12, 2000, jiadong trees, regarded as the dwelling place of the Thao's highest-ranking ancestral spirit, were planted on the island.