The story that carries Lü Dongbin is one of the most retold in Chinese literature. A young scholar, having failed the examinations again, stops at an inn. Another guest, Zhongli Quan, is heating millet on the stove. The young man dozes and dreams an entire successful life: he passes the examinations, rises to high office, marries well, has children and grandchildren, is slandered, loses everything, sees his family destroyed and dies in exile in the snow. He wakes. The millet is not yet done.
Everything after that is commentary on it. He accepts Zhongli Quan as his teacher, undergoes a series of tests, traditionally ten, in which he is confronted with terror, wealth, temptation, loss and insult and does not react, and is granted transcendence. He asks, in the best known version, to be allowed to remain in the world until every living being has been saved, which is a bodhisattva's vow arriving in a Daoist story and one of the clearest instances of the two traditions borrowing from each other.
He is drawn as a scholar in a robe with a sword across his back, and both attributes matter: he is the immortal who kept his learning, and the sword is for cutting through delusion and subduing demons rather than for fighting. Of the eight he is by a wide margin the most worshipped in his own right.