The purpose of this thesis is to research supernatural literature. Since the universe can be divided into three levels-heaven, earth, and hell-literature also can be divided into three genres-mythology, human literature, and supernatural literature. Liao Tsai is one of the most famous classical novels in China. It was written by an outstanding scholar Pu Sung-ling (1640-1715) in the Clung dynasty. This supernatural novel consists more than four hundred stones, and it is the most well known ghost story in China. This section of my thesis manly concentrates on the life of Pu Sung-ling and his repeated failures in passing the civil examinations for scholars, the pathway to obtain a high rank in government service. Pu's failure to get a position in government led him to write this novel to attack the unfair and ridiculous civil examinations. All his anger and sorrow was expressed through these ghost stones.