The Passion Barbecue Chicken Wings, in Shenyang, says its seasonings are a challenge for customers, just like Saddam was to the US and UK.
It features a picture of the despot, who has tried and executed for crimes against humanity, outside the building and more pictures inside.
A restaurant spokeswoman told the Liao Shen Evening Post: "Saddam loved challenges, and eating our spicy chicken wings also requires courage, so it's a good match."
Passer-by Qian Lianghui said he found the sign funny because he could not figure out the relationship between chicken wings and Saddam.
And local elementary teacher Fu Lei said: "It's novel but clever, better than just using beautiful models on the sign."
But a social science researcher said the restaurant should focus more on the quality of its food service than "gimmicks". (Liao Shen Evening Post)