After the War 500 years ago where Xiao lost all his friends he became the last Yaksha that's alive. Morax also known as Zhongli saved him from his never ending pain which is his karmic debt that he made over all the years of neverending violence. Xiao now became an Adepti that protects Liyue, his karmic debt is still with him but it's bearable now but it is dangerous to mortals.. He lives in Wangshuu inn. This lantern rite Xiao doesn't know yet that an old friendship will be reborn.