For the Chinese literature departments in Taiwan's universities, " applied linguistic and literature education" has never been a teaching highlight. To keep up with the times, however, education in Chinese literature has to evolve in line with national development while taking into account students' actual needs in work after graduation. Toward this end, strengthening applied linguistic and literature education seems to be an irresistable trend. Bearing this in mind, the author first clarifies some misperceptions many people hold toward "applied linguistic and literature education", in the hope of laying a groundwork for academia to discussing this subject with a fair view. Secondly, the author reviews the current applied linguistic and literature education in the Chinese literature departments and their current curriculum in this regard. This is to show the disadvantageous role applied linguistic and literature education now plays in Chinese departments of Taiwan's universities. Last but not least, several suggestions are brought up in consideration of the existing problems in our applied linguistic and literature education, in order to contribute toward a positive development of Chinese literature in this country.