Red Chamber Dream has a far-reaching influence on Bai Xian-yong, not only in the technique of writing, but also in the outlook on life. This paper will make a survey of the characteristics and development of different stages of Bai's novels, and try to explain the role Red Chamber Dream plays in them. Bai's novels maintain flesh-and-blood ties with his life experience, his outlook on life and his identification. Bai's novels can be divided into 4 stages: 1. a lonely teenager, 2. a solitary stranger, 3. twofold imagination and sound, 4. identification and return. The most influential parts of Red Chamber Dream are the Song of Hao and Liao, and the dramatic means and skills of the last 40 chapters.