The role of vagueness in the Laozi is explored by investigating its connection with "process." First, a hermeneutic methodology is developed and adopted, derived from PeirceÕs notion of "abduction." Second, this notion is analyzed, and several distinctive characteristics, or "traces," of vagueness are identified. Third, evidence of these traces in the text of the Laozi is collected, with comments on their significance in the Daoist context.