The objective of this study is to examine the way that narrative knowledge has been developed in literary theory and literary education and explore the direction of misconception studies as a new horizon for narrative knowledge education. First, the study examined Chatman’s narrative communication diagram and drew suggestions for this study. This suggested that it is more productive to flexibly apply conceptual knowledge and examine how such knowledge is constructed, instead of trying to create the conceptual knowledge that explains all narrative communication phenomena, when trying to analyze a certain facet of narrative communication. Second, the study examined how literary education address conceptual knowledge related to narration. The analysis result showed, wrong descriptions in the curriculum and textbooks are one of the factors that can contribute to forming misconceptions in teachers and learners. What is more important is to check whether these misconceptions influence the cognition and performance of teachers and learners and what status they hold in the learner’s conceptualization. Third, it explored the method and approach of misconceptions as a new study area of conceptual knowledge in literary education. As a suggestion for misconception studies in literary education, the study expandedthe horizon of discussions on knowledge in literary education and served as a basic reference for follow-up studies on misconceptionsin literary knowledge.