The Memorial Hall of the Xiushuhezi Battle is located inside the Xiushuhezi Martyrs Cemetery on the eastern side of the scenic Xiushuihu Nature Reserve, 40 kilometres west of Faku County.

During the Liberation War, the first battle waged by the Chinese People's Liberation Army against the Kuomintang troops after marching into Northeast China was the Battle of Xiushuhezi, hailed as "the first victory of the liberation campaign in Northeast China".

The battle was commanded by Lin Biao.

In February 1946, Chiang Kai-shek sent troops to attack the liberated areas in western Liaoning. The 265th Battalion and 266th Regiment of the 89th Division, 13th Kuomintang Army occupied Xiushuhezi Village.

The 7th Brigade of the New Fourth Army completely encircled the enemy troops in Xiushuhezi. At 5 p.m. on February 13, 1946, the PLA launched an annihilation campaign against the enemy on the outskirts. First, they routed the howitzer battalion of the Kuomintang’s 265th Regiment on Dajiazi Hill. Then the 7th Brigade of the New Fourth Army charged into the centre of Xiushuhezi Street, while the 1st Division seized the high ground north of the village before launching the general assault. Fierce bayonet fighting broke out in the village streets. Enemy reinforcements were blocked and wiped out. More than 1,800 Kuomintang soldiers were eliminated. The PLA seized 32 large trucks and over 490 American-made firearms and artillery pieces. A victory celebration was held in Faku County seat.

To commemorate the revolutionary martyrs who sacrificed their lives in the battle, the local government built the Xiushuhezi Revolutionary Martyrs Cemetery on the northern hill of Xiushuhezi Village, together with the Memorial Hall of the Xiushuhezi Battle. Construction was designed and started in 1968, and the main project was completed in 1970. In September 1997, the cemetery was named a Shenyang Municipal Patriotic Education Base by the municipal Party committee and government. In March 1998, General Hong Xuezhi, former Chief of Staff of the 3rd Division of the New Fourth Army and Vice Chairman of the National Committee of the Chinese People's Political Consultative Conference, personally inscribed the epitaph on the Martyrs Monument and the horizontal plaque for the memorial hall.

The cemetery covers an area of 12,250 square metres. It is enclosed by a red brick wall with four tall gate pillars at the main entrance topped with a concrete lintel. Fifty-seven metres inside the main gate stands a transverse wall with a second gate in the middle. Both sides of the stone paths are lined with lush green pines and cypresses. Seven tiled concrete houses with gable roofs were built on either side between the two gates.

The Martyrs Monument stands in the middle of the path. It rises 15.7 metres high on a square stone base of 18.5 metres. Eight official clerical characters — Eternal Glory to the Revolutionary Martyrs — are carved on the stele, topped with a five-pointed star. Behind the monument rest the remains of more than 800 martyrs who fell in the Xiushuhezi Battle. The towering evergreen trees lend the whole cemetery a solemn and dignified atmosphere.

The exhibition halls of the memorial hall house revolutionary cultural relics from the campaign, including fountain pens, badges and pocket watches left by the martyrs. The memorial hall attracts visitors from all over the country. Many senior military figures have come to pay tribute to their fallen comrades: battle hero Zhi Shunyi, Lin Doudou (Lin Biao’s daughter), General Li Fenggui (former Deputy Political Commissar of Chifeng Garrison Command), General Liu Haiqing (former Commander of Xinjiang Military Region and member of the Standing Committee of the National Committee of the CPPCC), and other veteran generals. Retired senior officers from the rest home of the Shenyang Military Region come every year to honour the martyrs.