While it is almost a generic convention for xiaoshuo小說(Chinese fiction) to make reference to karmic retribution, several novels of the seventeenth century proved to be particularly obsessed with this retributive concept. For example, the full-length novel Xingshi yinyuan zhuan << 醒世姻緣傳 >takes enormous pains to contain its extremely complex narrative within the interpretive framework of karmic retribution to drive home a particular didactic message. This essay first tries to answer, from a broad historical perspective, the question why this retributive idea became so predominant in many fictional works during that period. Then it explores in detail the implications of karmic retribution in relation to the novel's other features, some of which sometimes seem to be directly undercutting the validity of this very concept. This apparent and yet subtle ambivalence toward karmic retribution testifies to the novel's ideological quandary:the desperate need to find a viable theodic theory to account for the dominance of social evils during a time when the existing Confucian moral order was unraveling rapidly. This essay argues that it is the tension between the novel's retributive teleology (i.e., the novel's structural stability based on this particular notion of retribution and redemption) and the chaotic nature of the moral reality which this notion is supposed, but fails, to contain that renders the novel especially interesting. The essay tries to demonstrate how this retributive scheme provides the novel with an ideological as well as structural coherence and how this very scheme, at the same time, is being problematized by the moral ambiguities the novel constantly generates.