This study examines the Carved Bone of Shang dynasty, an important ancient artifact in the collection of National Museum of History, Taipei. This artifact was excavated in the Tomb No. 1001 from the site of Yin Xu in 1936. The first section of this study traces relevant facts about this artifact and describes how it came to Taiwan. The second section examines the decorative patterns on this artifacts and describes the possible links to the political and religious significances of totem worship. In the last section, this study concentrates on bone artifacts excavated from the same site and speculates this artifact's possible functions in hunting and military actions. This study concludes on the potential meaning and contribution of this artifacts for our understanding of the social, political, religious, and aesthetic aspects of life in the Shang dynasty.