Yuan Muzhi, born Yuan Jialai in Ningbo, Zhejiang province, went to school in Shanghai at age 13. He was very active in theater when he was in middle school and college. and won a fame of "Protean" for his expressive performances. He entered the Diantong Film Company in 1934 and starred in Taoli jie (The Plunded of Peach and Plum, 1934) and Fengyun ernü (Sons and Daughters of The Storm, 1935). Later he transferred to the Mingxing (Star) Film Company and played two characters in Shengsi tongxin (Unchanged Heart in Life and Death, 1936). His success in acting eventually encouraged him to direct films. Yuan made his directorial debut Dushi fengguang (Cityscape) in 1936 and second film Street Angel in 1937. Shortly after the breakout of the War of Resistance Against Japan (1937-1945), he went to Wuhan and then Yan'an, the base of Chinese Communist Party in the war time, and participated in the production of documentary Yan'an and Eight Route Army. He became the head of the Northeast Film Studio in 1946 and head of Central Film Bureau in 1949.