The majority of research on the Battle of Shanghai mainly focuses on rediscovery and reinterpretation of historical data. This study adopts a strategic research approach to conduct case study as an analysis of the history of this battle. In this study, the author explores the Battle of Shanghai through strategic theory and the concept of grand strategy to discuss the launch of the battle by the Nationalist army, which forced Japanese army to change their war strategy and the post-war impact. This article will present a new point of view: this battle forced Japanese army to enter the Southern China prematurely and thus caused the dispersion of the troops. Therefore, after taking back Wuhan, the Nationalist army achieved Clausewitz's called ”the culminating point of victory” , which means if attack of any wars can not make peace directly, it is ended up with defensive condition. Consequently, it made Chiang's strategy of ”protracted war” successful.