This article examines Schelling's solution to the issue of the opposition between freedom and necessity in his Freiheitsschrift (1809). Its primary aim is to shed light on Schelling's insight through his critique on idealism and realism. The article is divided into four sections. After a brief introduction to the leading question, section one describes Schelling's refutation that freedom is incompatible with determinism. In order to solve the problem, section two depicts that he interprets the law of identity as a creative one. Then he criticizes that the idealistic freedom cannot account for the "specific difference" of human freedom or human's "capacity for good and evil," which is illustrated in section three. It is the author's view that the issue of evil challenges all philosophical system, not just idealism and realism. Based on the author's view, section four demonstrates that Schelling's philosophical system of freedom aims at a more inclusive systematic philosophy which transcends the opposites of idealism and realism.