The academic resources of Mr. Xiong Shili, who has contributed himself into the research and establishment of function philosophy and laid foundation for the development of contemporary New Confucianism, are quite abundant. Confucianism together with Buddhism, Taoism and Western Learning are the 4 stanchions to support his academic palace. This paper will discuss the Buddhism and Taoism in his academic resource to probe into: (1) How does Xiong Shili study Buddhism flexibly? On one hand, he advocates the active animadvert on Buddhism; on the other hand, he invokes it to establish his philosophy system. (2) How does Xiong Shili compare the similarities and differences between Confucianism and Taoism comprehensively? He makes use of Taoism to relieve the unbalanced mind for failing to realize the ideal when pointing out its defects, and therefore proves that Buddhism and Taoism are rather the essential process to establish his philosophy system than the final result of his academic ideal.