The Xiao Alliance or originally Yan alliance in the light novel, is a group created by Xiao Yan in order to better protect his family, from Spirit Hall. It is also created to replace Yun Lan Sect as a force to represent Jia Ma Empire in the North West region of the Dou Qi Continent. This is an alliance of many diffrent organizations, groups and clans in Jia Ma, including but not limited to the Na Lan family, the Royal family, the Miteer Family, the Receptarier Guild of Jia Ma Empire, and some other equally important forces not included in the manhua.
This alliance was first mentioned in chapter 175 of the manhua and chapter 735 of the English/Chinese version of the light novel. This is chapter 728 of the Vietnamese version.
Not to be confused with Xiao Gate in the Black-Corner Region which is another faction founded by Xiao Yan initially to battly the Misty Cloud Sect.