In Romance of The Three Kingdoms
In the novel by Luo Guanzhong, the blade was forged by a local blacksmith using steel sponsored by Zhang Shiping (張世平), a merchant sympathetic to Liu Bei's cause. When Guan Yu met his end at the hands of Lü Meng in 219, the blade was given to Pan Zhang by Sun Quan for his role in capturing of Guan Yu. Later, when Guan Yu's son Guan Xing soon sought revenge on Pan Zhang, Pan Zhang was startled by a vision of Guan Yu's spirit and was killed by Guan Xing. Guan Xing took back the Green Dragon Crescent Blade and thus the blade was passed down from father to son.
Read more about this topic: Green Dragon Crescent Blade