There is evidence of a large fire that burned the wooden structures that once housed the Terracotta Army. It was described by Sima Qian, who said that the fire was a consequence of a raid on the tomb by General Xiang Yu less than five years after the death of the First Emperor. According to Sima Qian, General Xiang's army looted the tomb and the structures holding the Terracotta Army, as well as setting fire to the necropolis and starting a blaze that allegedly lasted three months. Because of this, only one statue has survived intact: a statue of a kneeling archer. Despite the fire, however, much of the remains of the Terracotta Army still survive in various stages of preservation, surrounded by remnants of the burnt wooden structures.

In 1999, it was reported that the warriors were suffering from "nine different kinds of mold," caused by raised temperatures and humidity in the building which houses the soldiers, and by the breath of tourists. In addition, the South China Morning Post reported that the figures have become oxidized gray from being exposed to the air, which may cause arms to fall off, and noses and hairstyles to disappear. However, officials have dismissed these claims. In Daily Planet Goes to China, the Terracotta Warriors segment reported that the Chinese scientists found soot on the surface of the statue, concluding that the pollution introduced from coal burning plants was responsible for the decaying of the terracotta statues. The Sichuan earthquake caused some slight damages to several soldiers. One soldier in Pit #2 tilted to the right at 5 degrees. Several small cracks appeared on two soldiers and one horse statue in Pit #3. But overall the damage was minimal. Recently, officials have begun to bury sections of the pits, to preserve the figures.