In "Ancient Capital" ( 古都 ), Zhu Tianxin ( 朱天心 ) employs the device of multiple space-temporality and sophisticated cultural allusions to under-take multi-faceted reflections on the self, ethnicity, history, and the city. Previously scholars have done a lot to explicate the meaning and implica-tions of this work; nonetheless, much remains to be said about its narrative strategies and aesthetic techniques. In order to dissect its aesthetic tech-niques, this paper focuses on the fiction's central allusions, namely, Tao Qian's ( 陶潛 ) "Taohuayuan ji" ( 桃花源記 ) and Kawabata Yasunari's ( 川端康成 ) The Old Capital ( 古都 ). I concentrate on the central image of the "Peach Blossom Shangri-la" ( 桃花源 ) to reveal how the narrator, either overtly or covertly, uses this cultural symbol to describe the processes as well as the different levels of identification that she goes through: from a person returning to the "Peach Blossom Shangri-la," to a pure passer-by, and finally to a state of being abandoned. I demonstrate how the trans-formation, extension, broadening and even deconstruction of the "Peach Blossom Shangri-la" image is undertaken by Zhu to infuse the image with a paradoxical quality of both being contradictory and complementary. In the end, my goal is to layout the twisted yet interconnected processes of the image's life-path in "Ancient Capital." I contend that the narrator is both an embodiment of the "Peach Blossom Shangri-la" spirit, and a fake "Wuling fellow" ( 武陵人 ) at the same time; that she displays a distinctively diasporic complex entangled with the loss and recovery of historical memory, as well as the exile from and the returning to a homeland.