Lu Hsun, pioneer and standard-bearer of modern Chinese literature, wrote this book during the early twenties. It is a study of the historical development of Chinese fiction from early myths and legends down to well-developed long novels written at the end of the Ching Dynasty. The characteristics of various forms of fiction through the centuries, the development of these forms and their influence on each other are lucidly presented, while such major works as the novels Hung Lou Meng (A Dream of Red Mansions) and Shue Hu Chuan (Water Margin) are reviewed in detail. Chinese fiction had its roots in story telling, and the feudal ruling class despised folk literature of this kind. The May 4th Movement of 1919 dealt a mortal blow to the feudal forces in Chinese culture. Then the study of this form of literature began to make headway, Lu Hsun being one of the first to carry out research in this field. This book, the earliest systematic study of the history of Chinese fiction by a Chinese writer, still exercises a great influence among Chinese scholars. This English translation is illustrated with reproductions of early Chinese woodcuts.