Fantasy literature creates unreal things and unexplainable events that go behind our experience and cognition. The authors can thereby develop their unique vision to observe the world deeply, and thus make their writings much richer of spiritual values. Li Bai used the images of "dragons" in his poems to rationalize the things that were considered absurd, illusory and perverted in the real world. In doing this, he built a fantasy world where he could ride a dragon highly into the sky and overlooked the real-life difficulties over there. He wrote the actual world by comparing it with the view of mirage; this way he had explored the essence of human society and revealed his concerning to the people. In this article, we study the phantom and the projection in Li Bai's poems from two viewpoints, i.e., "flying a dragon into the fairy world" and "the smart actions and transformations of dragons". Following Li Bai's unique and profound observation, we can almost feel those situations in history, such as "the aspiration and difficulty on contributing oneself to the people", "the experience and emotion about the treacherous world", "the ridicule and admomsh to the emperor's debauchery", "the perspective and reflection to the history of rise and fall", and "the understanding and indifference to the fame and fortune".