Wenxin Diaolong is a masterpiece of literary criticism in ancient China. "Wenxin," or the exertion of the mind in writing, is the core of literature, according to the author Liu Hsieh (courtesy name Yen-ho). Liu also believes that the Way of Yi as in Yijing, or "taiji," is the origin of literature. "Taiji" comes from Yijing, and represents the perfect harmony between "yin" and "yang," or the "supreme ultimate" state of endless cycles of lives in nature. As such, "taiji" is the origin of creativity in humanities. This article aims to examine how Liu brings together the literary mind and the Way of Yi, and how he illustrates the creative function of the literary mind. Based on relevant research, this article concludes that, on one hand, the literary mind achieves emptiness and tranquility, and consequently determines the approach through imagination ("shensi"); on the other hand, it cultivates awareness, and consequently determines the structure through flexible adaptability to varying situations ("tongbian"). "Shensi" and "tongbian," are therefore the two aspects of "Wenxin," its key to the manifestation of the Way and its creative function lie herein. The key to the craft of literature ("Diaolong" or "Carving of Dragons") is the manifestation of the literary mind, this is of the uttermost importance in Liu's masterpiece