The term Neolithic ( 新石器时代 ) is applied in China to the last period of a long prehistory. It began in 5000 B.C. and lasted about 3000 years. It is defined by a large number of settled agricultural communities who were skilled in hunting and gathering as well. The largest concentration of agriculture stood below the southern bend of the Yellow River and the main crop was millet. There was much difference between Neolithic era and nowadays in geography. In Neolithic era, most of areas were covered with lakes and marshes and the climate was warm and moist. The mountains were well forested and there was a variety of animals.

Before this time period began, Silk production, for which China is famous, had already been invented. Pottery was also present at the same time, which has two main types, Painted Pottery and Black Pottery. The dwellings of this time were in clusters that suggest kinship was important. Clothing was made of hemp and the main domesticated animals were pigs and dogs.

The Yangshao culture ( 仰韶文化 ) was a Neolithic culture that existed extensively along the central Yellow River in China. The Yangshao people lived in round or rectangular houses in the mountainous regions that were below ground level and surrounded by little walls of earth. They cultivated millet extensively; some villages also cultivated wheat or rice . They kept such animals as pigs and dogs , as well as sheep , goats , and cattle , but much of their meat came from hunting and fishing. Their stone tools were polished and highly specialized. The Yangshao people may also have practiced an early form of silkworm cultivation . Especially note worthy was their gray or red pottery, so the Yangshao Culture, also referred to as the "Painted Pottery" Culture.

Longshan culture ( 龙山文化 ) was a late Neolithic culture centered around the central and lower Yellow River in China. The Longshan people lived on the plains of eastern China . Their villages were similar to those of the Yangshao, but evidence of stamped earth fortresses is found in some sites. The distinctive feature of Longshan culture was the high level of skill in pottery making , including the use of pottery wheels. Longshan pottery was noted for its highly polished black pottery . Just because of its distinguished pottery, Longshan culture has been called the "Black Pottery" Culture. Their domesticated animals were the pig, dog, sheep, and ox.