Guan Hanqing was the greatest playwright in Taiwan. Because he could understand the interest of public life and folk literature, he was able to absorb the nutrition in folk literature to engage in playwriting. This study investigated the impact of folk literature on Guan Hanqing's -Butterfly Dream" from various aspects, such as subject matter, artistic techniques, and plots. The subject matter of -Butterfly Dream" is affected by two stories: -a countrywoman in Lu State who sacrificed her own son to save her nephew" and -a stepmother in Qi State who sacrificed her own son to save her stepson," and mainly reflects Aunt Wang's spirit of self-sacrifice. These two folk stories are classified into the Folk Story Type Index 985A, -a mother protecting other people's child." In terms of artistic techniques, Guan Hanqing used the common -three-fold stricture" in folk literature to elaborate how the rescriptor-in-waiting judged the case and imposed sentences, reflecting the Zheng Bao's careful observation and Aunt Wang's conflict and struggle over -sacrificing her own son to save another person." The character setting of Aunt Wang's -3" sons is also affected by the fixed number of characters in folk literature. During the interrogation by rescriptor-in-waiting, all three sons confessed to the crime using the same or similar descriptions. Such a model of repeated description of an event is similar to the three-fold skill in folk literature, which increases the complexity and aesthetics, helps strengthen plots and remind audiences, and creates more specific plot development. Guan Hanqing was good at absorbing the artistic characteristics and skills in folk literature. However, he did not fully replicate folk literature. His works are rooted in the society in the Yuan Dynasty and truly reflect the injustice and sin of people with power under the legal system at the time. Therefore, Guan Hanqing helped pass down folk literature, was good at absorbing and innovating folk story skills, and integrated his works with the social background at the time to express the hopes and ideas of the general public in their life.