Bianwen (transformative text) was a popular form of narrative literature flourishing in the T'ang Dynasty (618~907), with alternate prose and rhymed parts for recitation and singing. It was often on Buddhist themes. This paper, after a careful and detailed discussion of such bianwen texts as The Story of Dong Yong, The Story of Shunzi, The Story of Han Qinhu, Poems on Ye Jingneng, Ode to Swallow, and A Debate Between Tea and Wine, aims at indicating the colse relationship between the Dunghuang bianwen texts and Buddhism, Buddhist literature, and even Indian literature. Although the first four bianwen texts were written by Chinese writers, and their titles also show that they are seemingly Chinese stories, they in fact were filled with Buddhist influence, which included Buddhist terms, Buddhist ideas, and enlightment from various Buddhist stories. The last two bianwen texts are fables, in which the Buddhist influence is obvious, and also in which traces of ancient Indian fables can be found.