Xiang's heroism on the battlefield and his death at the hands of Liu Bang has been immortalized in the Shiji ("Records of the Grand Historian") has made him a cultural hero in Chinese folk tales and poetry. However, he is also viewed as having bravery but no wisdom, as summarized in the Chinese idiom "youyong wumou" . His military tactics were required learning for generals, while his political blunders were also required learnings for emperors as to what not to do as leaders. An idiom that referred to his being surrounded at Gaixia is "surrounded by Chu music" (simian Chuge,), which refers to a desperate situation without allies -- based on Xiang's lament at Gaixia that he heard Chu songs coming out of Liu's surrounding camps, implying that Liu had conquered all of Chu. Yet another idiom that refers to the inability to listen to advice is, "having a Fan Zeng but unable to use him", referring to Xiang's reliance on Fan but actual inability to listen to Fan's advice, which came out of Liu's critique of Xiang after his final victory. (For the more complete quote from Liu, see here.)

Through time, Chinese folk tales and poetry made Xiang Yu a glamorous general. He is seen by Chinese as an eager young man desiring to change the world with his own hands. His ambitions came to a quick stop as he committed suicide at approximately 30 years old. He is depicted as a ruthless leader, making a sharp contrast with his rival, Liu Bang. He was known to be a mass murderer starting from the battle of Julu. On the other hand, Liu Bang is depicted as kind gentleman, who strictly ordered his troops not to loot in the cities they conquered. Liu's desire for peace gained trust from the people, which Xiang was not able to do. As the story goes, it was Xiang's biggest mistake as a leader. It soon became an example for confucianists to say that leaders should rule with love, but not fear.