The Shar Pei breed comes from the Guangzhou province of China where it was well-known as a fighting and guard dog. Originally, it was an all-purpose utility dog of poorer farmers and had fewer wrinkles; when the British introduced dog fighting to China in the late 19th century, it was the breed best suited for this purpose due to its size and strength. The dogs were then bred with an increased number of wrinkles for their advantages in fighting; if the dog was bitten on a wrinkle, it could still turn around and bite back. At one point they were close to extinction, and were listed in the Guinness Book of World Records as "The rarest dog in the world". Since then, however, the Shar Pei has begun to thrive in many parts of the world as an excellent family dog, due to their loving and devoted nature, which shows that they were originally a utility and companion breed rather than a fighting breed.

Recent DNA analysis has concluded that the Shar Pei is one of the most ancient dog breeds.