This article intends to conduct theoretical analysis on three stories from Buddhist Scriptures. Applying J. Cohen's discussion about a "good" story and D. H. Russell & C. Shrodes's "Identification Catharsis-Insight" theory, possible responses after reading the three selected stories will be revealed. After the analysis, it is reasonable to infer that reading the stories could elicit positive effects in their attitude and psychological health. These selected stories are only three examples from a vast amount of meaningful stories in Buddhist Scriptures. It is noticeable that a large number of stories in Buddhist Scriptures have a similar narrative structure. A character in the story felt distress because of encountering certain problem. He / She came to the Buddha and sought for advice. After listening to the words of wisdom from the Buddha, the character gained insight and had a change in attitude or behaviour. Eventually, the character had overcome his / her distress. The characters in the stories are not extraordinary people, the problems they faced were some hassles and hardship which common people also encounter. This study suggests that such stories are more capable to induce the "identification" response of the readers which is a crucial step for bibliotherapy to take effect. Thus, the conclusion of this article is, if stories in Buddhist Scriptures can be used in bibliotherapy, they should be able to become effective reading materials for enhancing readers' mental health. Efforts and resources for empirical studies are worthwhile for further testing of the effectiveness of using those stories.