This thesis applies a synthetic method of historical investigation, religious studies, literary criticism, and quantitative analysis to study the relationship and interaction between the Fayan lineage of Chan Buddhism and the Literature of Southern Tang. The research is conducted from four perspectives: 1) the rulers of Southern Tang and the Buddhist bloom; 2) the Fayan lineage of Chan Buddhism; 3) the literature of the Fayan lineage; and 4) the literature of Southern Tang and the Fayan lineage. Fayan Wenyi advocated the learning of Buddhist scriptures and emphasized the unification of Chan thought and Buddhist teachings, which suited the needs of the Southern Tang rulers. As a result, Wenyi and his disciples were particularly held in esteem by all the three rulers. With their support, the Fayan lineage formed, developed, and flourished, becoming the most influential lineage of Chan Buddhism in the late Five Dynasties. Many Chan monks of the Fayan lineage were excelled in composing verses. Their works usually described pure and tranquil scenes and reached the highest level of contemporary monk-poets’ works. Almost all official-literati of Southern Tang were associated with Buddhist monks and wrote lots of literary works related to Buddhism. The two major styles popular among Southern Tang poets, “The Style of Bai Juyi” and “The Style of Jiadao,” were influenced by Chan Buddhism. Poems and ci lyrics by the Southern Tang poets often present pure and tranquil scenes, and their extant essays are mainly epitaphs and inscriptions written for Buddhist monks and monasteries. Under the influence of the Fayan lineage, the Southern Tang literature displayed strong flavor of Buddhism; with the impact of Southern Tang literature, the Fayan became a Buddhist lineage with remarkable achievements in literature. The interaction and mutual influence between the Fayan lineage and the Southern Tang literature brought the glorious yet temporary bloom of Buddhism and literature to the Southern Tang kingdom. Keywords: Southern Tang, Buddhism, the Fayan lineage of Chan Buddhism, the literature of Southern Tang