The late Professor Tang Chun-I's last master work of Life Existence and Realms of the Mind is a comprehensive theory based upon the empathetic communications between human minds in the three dimensions of transcendental, horizontal and longitudinal, with the three ontological dimensions of noumena, phenomena and function resulting in a three folds of subjective, objective and what beyond subjective and objective forming a total of nine realms of states. In the last three states, Professor Tang listed, with critical analysis, Christianism, Buddhism and Confucianism respectively and without Daoism. He places Daoism basically in the fifth state with qualifications that it also contains elements of the eighth and ninth states and fusing with the latter two. It makes the state revealed by Daoism somewhat ambiguous. This thesis takes the broad perspective evaluating Tang’s life-long exegetics of Zhuangzi’s philosophy. It contains three different levels of exegesis of Zhuangzi (ontology-cultural-comparison of Zhuangzi and Mencius), which is effectively representative of Tang’s comparisons of Zhuangzi with Laotze, Gou Xiang and Mencius. This thesis will rely basically upon his last interpretation to reveal in a microscopic dimension the reason why the status of Daoism is ambiguous in his last master work. I employ the inter-related of the “principle of co-establishment of mind and state” in the Life Existence and Realms of the Mind and the “principle of co-arising of mind and reason” in Investigation of the origin and development of the basic concepts of Chinese Philosophy as a clue in the explications of the following three theses: How the spiritually motivating mind’s understanding the metaphysical principle could make possible the fifth state; how the moral mind which contains the principle of Nature make possible moral practice in the sixth state; how the sympathetic mind which establishes the principle of emptiness makes possible the eighth state of the emptiness of both the self and dharma; the Heavenly mind which contains the Heavenly Principles makes possible the manifestations of Heavenly virtue in the ninth state: so as to re-construct the Daoistic system of state in Life Existence and Realms of the Mind. Since Tang also remarks that his nine-state system of mind and existence is basically an exposition of the framework he already set in his earliest books of Experience of Life and The Self-establishment of Moral –self, hence I also made a re-construction of his system of mind and state in his early thesis of “The Tenfold Road of Life” in these earlier writings. I first explicate Tang’s moral metaphysics, and following that how moral cultivation could make the union with Heaven and Earth and the ten thousand things as one possible. Lastly, I shall present the inter-relationship and inter-explication of the two so as to present the special contribution of Tang’s life long and mutual inter-penetration of his Life-long Learning, and how it shows the special contribution of Daoism in Tang’s philosophy.