The KMT left wing established a "Revolutionary Committee" at Nanchang to plant the spark that was expected to ignite a widespread peasant uprising. Deng Yanda, Soong Ching-ling and Zhang Fakui (listed nominally, who later crushed the uprising) were among the political leaders.

Military forces in Nanchang under the leadership of He Long and Zhou Enlai rebelled in an attempt to seize control of the city after the end of the first KMT-Communist alliance. Other important leaders in this event were Zhu De, Ye Ting, and Liu Bocheng.

Communist forces successfully occupied Nanchang and escaped from the siege of KMT forces by 5 August, withdrawing to the Jinggang Mountains of western Jiangxi. 1 August was later regarded as the anniversary of the founding of the People's Liberation Army (PLA) and the first action fought against the KMT and the National Revolutionary Army (NRA).