This paper is intended to reexplore the development of the Chan Sect of Buddhism and the relevant problems about the 28th founders’ teaching Buddhism sutra. First it expounds that teaching Buddhism sutra is completed the way teaching staff teach it privately from generation to generation instead of traditional transmitting. During this period the Fu Fa Zang Yin Yuan Zhuan plays an important role. Tan Yao, the leader of Buddhist priests, compiled this book in accordance with Emperor Taiwu’s order to destroy Buddhism and established the clear 24 threads of Buddhism sutra passed on from generation of generation. Afterwards one of the threads Bao Lin Zhuan officially completed the combination of East and West Chan sects in literary expression for the purpose of promoting South Chan sect. By comparison between the two of them it can be found that Bao Lin Zhuan supplemented large numbers of stories based on the Fu Fa Zang Yin Yuan Zhuan to turn Buddhists of Hinayana who comprehend Buddhism sutra by hearing into Chan sect Buddhists of Mahayana. The follow-up Buddhism history all abides by it. According to the 28th Buddhist founders’ ism, Zheng Dao Gewe is written right before Yongjia Period, this article argues that Zheng Dao Gew is not a pseudo-work by giving evidence in accordance with 29 Arhats located at Kanjing Temple of Langmen Grottoes that were made in Songluo Region in Wuzhou Period in which the North Chan of Buddhism was the most prosperous, and deduces that North Sect of Buddhism did played a role in the Combination of united Buddhism. On the basis of comparison and analysis the present paper, stress is laid on examining the imparting of Buddhism sutra and the Buddhist classic works’ development that continually supplement and develop in the different eras for the different in the different eras for the different purposes. Meanwhile it is seen from this that the North sect of Buddhism originally establishes the combination.