The "Dead Mother Returns to Sucker Her Child" has been a long-standing legend, the origin of whose story prototype can be traced back to Hong Mai's Record of the Listener (Yi Jian Zhi) in Southern Song. In Taiwan, there is the story of "Dead Mother's Grave" that has been transmitted and developed in Houli. This paper traces the origin of the prototype and plot of the "Dead Mother's Grave" legend of Houli through the classification, induction, and deduction of literary sources. At the same time, a comparison-and-contrast is made between the "Dead Mother's Grave" story and other similar story plots. And from the dimensions of local residents' psychological needs, traditional cultural thinking, and collective identity with geomancy (fengshui) and folklore, this paper extends to find out the uniqueness of the "Dead Mother's Grave" legend of Houli that separates it from other stories of the same kind, so as to exhibit its characteristic of connecting locality, folklore, and culture.