Tsai Hui-ru (1881-1929) is one of the important political activists during the Japanese colonial period in Taiwan. However, current research of his life and works is very limited and insufficient with misunderstandings. This paper tries to decipher Tsai's life picture and modify the misunderstandings by using newly-found materials, which include original data collected from fieldwork, newspapers and magazines from the colonial period, and dairies from relevant figures. This paper consists of two parts: his personal life, and his activities and writings in literature. The first part draws attentions to the process in which he starts his early life as a businessman and later devotes himself to the Taiwanese nationalist movement. By looking into his literary activities and works with reference to his personal life, the second part hopes to understand the way in which Tsai becomes an intellectual pioneer who advocates the importance of enlightenment from a defender of traditional Han culture. This case study on Tsai may provide an example of looking at the transformation of intellectuals between the old and the new age during the colonial period.This paper is followed by an appendix under the title of ”Newly-found Materials of Tsai Hui-ru: the Li Society, Pictures and Letters.”