By the method of traceability, the article systematically reviews Yan Fu’s translation of Christian terminology with a further cultural interpretation. First, Yan Fu followed the tradition of Chinese translation on Christianity and clearly recognized the inaccuracies of those translated terms, such as the case of “Jingjiao”(景教). Meanwhile, Yan Fu has developed the unique way of translation, especially in transliteration. For example, he transliterated bishop into “bixie”(毕协)which is different from the general term. Moreover, one term has more than one equivalence in Yan Fu’s translation, i.e., different translations for one term. Some translated terms have been gradually replaced, but still with special value in modern translation history of China. We should notice that the theoretical consciousness of localization runs throughout Yan Fu’s works as he interpreted Christianity from the perspective of Confucianism and Buddhism with elegant language. Though some terms were not entirely satisfactory, the academic value of Yan Fu’s translation cannot be underestimated.