This study is focus on the new interpretation of ‘The Butterfly Dream [胡蝶 之夢] fable’ at ‘Chap. Two: Discussion on Making all things Equal’ in the Chuang-tzu. Up to now scholar can not make agreement in the interpretation on this fable. Even though they generally agree on the first part of this fable, they have very different opinion in the middle and latter part. Having question about the existing interpretation, I attempted to try new interpretation. Discussing the first part of this fable, I followed the existing interpretation literally, but I interpreted it differently in meaning they have. At the existing interpretation, they know that this fable have positive meaning of being one body between Chuang-tzu and Butterfly in dream. But in this paper, I read it negatively as not waking out of a dream. In other words, I interpreted ‘the awakening’ as ‘finding enlightenment’. Discussing the middle part of this fable, I also followed the existing interpretation literally, and read it differently in meaning they have. At the existing interpretation, they did unnatural expatiation in this part, doubting the difference with the context of the whole text. But in this paper, I explained it exactly as there are exact division[分] between an illusion[夢] and truth[覺]. Discussing the latter part, I interpreted it very differently with the existing’s. They interpreted it as ‘change of things’ positively. But I interpreted it as ‘being changed by the things’ negatively, as is the recent study by a scholar.