The objective of this article is to examine whether Xiyou Bu and Zhangui Zhuan belong to the category of grotesque novels, "Grostesque" always been merged with satire and it is an opposition to the "Sublime" type of literature. The basic idea regarding grotesque is the tone of incongruity. What contributes to this tone is the controversial feelings of horror and laughter being aroused simultaneously. Very often, grotesque has been regarded as a kind of black humour. Besides the tone of incongruity, grotesque literature frequently associate with exaggeration, abnormal presentation, caricature type of description as well as responsible for producing the effect off shock and surprise. In Liu Zhang (劉璋): Zhangui Zhuan, the national hero Zhong Kui (馗) killed different "spirits" in the human world. These "spirits" actually represent different vices in men. The luster monk keeps a group of his mistesses in a religious temple. The meanspirited miser at the moment when he breathes his last, still rises up and makes sure that his son will be smart as not to be cheated by others. The luster, the miser and all the other thirty-six "spirits: are allegorical figures representing different human follies. These "spirits: creates funs and horror at the same time. Take the scene of the five spirits making fun of Zhong Kui as an example. It begins as a joke and ends up as a slaughter. It is a world of topsy turvydom that the "spirits get the upper hand but it is also a world of funs with the national hero becomes a drunken man. This comic atmosphere changes to a battle ground of slaughter when the general of Zhong Kui return. Both laughter as well as fear aroused simulaneously and create a sense of incongruity. As for Xiyou Bu, it is also a grotesque novel. The grotesque elements mainly concentrate in chapter 8 and 9 where Wu-kong (悟空) acts as the supremen judge of the underworld and Qin Hui (秦檜) becomes the criminal. This court trial scene builds a wonderful atmosphere of grotesque into the novel. The type of punishment that Qin Hui receives invokes both laughter and fear. As for the content outline, this article falls into the following parts: 1) Definition of the grotesque: The definitions put forward by Philip Thomson and Wolfgang Kayser have been examined careful to get a more acceptable definition of the grotesque. 2) The grotesque and incongruity: Incongruity is the tone of the grotesque. Controversial feelings of fear and happiness aroused simultaneously contribute to the tone of incongruity. 3) The grotesque and the Abnormal presentation and reduction are techniques to devalue the target of satire. 4) The grotesque and the Exaggeration. 5) The grotesque and the Caricature: Just like caricature, characters appear in the grotesque literature are queer, exaggerated, and strike out to be the target of satire. 6) Cathartic Effect: The release of anxiety aroused by the grotesque literature helps readers to strike a balance in the upset disturbing mood. 7) Conclusion: The relationship between grotesque and satire.