At the turning of Western and Eastern Han Dynasties, Buddhism immediately merged with Chinese traditional cultures. Since its introduction to China on, several hundred years passed, the two integrated during Sui and Tang Dynasties. And by far, some fully Buddhist versions had become the active element stimolated the development of the narrative literature in Suim, Tang and Five Dynasties. Legends, myths, fairy tales and folklores in Miscellany of the Youyang Mountains, less of more, indicated some principal and subsidiary causes of Buddhism with the further infiltration and combination to Chinese traditions. Finally, Buddhism had greatly reflected and forede the noivel writers’ creative direction and style in Tang and Five Dynasties.