Summary There is a general consensus amongst scholars that one of C.G. Jung's great contributions to modern psychology can be ascribed to his innovative and often provocative interpretation of Eastern philosophy. This paper seeks to show how he was influenced and inspired by ideas found in Taoism and Buddhism. This exploration will be effected by tracing and comparing Jung's major concepts with the original Chinese concepts as found in Chinese sources, including the Taoist text,The Secret of the Golden Flower. It is the author's contention that the most striking similarity between Jung's ideas and Chinese philosophy lies in the correspondence between Jung's theory of personality development,climaxing in his notion of individuation with that of the neo-Confucians' idea of self-realization and their belief in man's perfectibility. This paper will also demonstrate that the conflict between Kantian and neo- Confucian views on man and God (Heaven) as expounded by Contemporary Confucian scholar,Mou Tsung-san can be reconciled by an explication and understanding of Jung's concept of Mandala. Since Mandala, as the center of the conscious and the unconscious becomes the underlying unity of these two world,which in Kantian terminology are the phenomenal and the noumenal and in Mahayana the Gate of Birth and Death and the Gate of Suchness, and can be used to nullify the gap between the two worlds, Jung's ideas provides a crucial and refreshing elucidation of Professor Mou's "self-degredation" as a method for the development of science and democracy. By being the first western thinker to capture the essence of Taoist and Buddhist philosophy and demonstrating that self-realization transcends race and culture,Jung has made a watershed contribution and has succeeded remarkably in bridging the chasm between Eastern and Western thinking.