Abstract: The Literary Theory written by Liu Yongji was the lecture contentin literature class when he was in Mingde Middle School,which represented the objective need of the modern transformation in the ancient Chinese literary theories so that it can actin accordance with teaching needs.For positive coping actions adopted to deal with the collision and amalgam between Chinese and western cultures, he was neither blindly exclusive or self-imposed,nor abandoned Chinese tradition to realize the overall westernization.He advocated to adopta pragm atic attitude to do probably in academic so as to meetthe challenge from western culture.He absorbed the literary theory from the western theory of evolution and the scientific study method from the western,and he attempted to fulfillthe transformation of modernity in the ancient Chinese literary theories.Though histheory tended to be some westernization in application,he used western scientific method to explore the problems existing in ancientliterary theory,and he offered a very good modelforthe following researchers.