This chapter examines the hermeneutic method of WANG Bi’s interpretation and demonstrates how it is used in his interpretation of classical texts from the perspectives of the Daoist annotation tradition and the development of Confucian classics studies in the Han Dynasty.Jiang shows that WANG Bi’s discourse on the relationship between words and ideas emphasizes the significance of textual meaning and expands the scope of hermeneutics. WANG Bi’s transition from cosmology to ontology disrupted the theoretical framework of Han Dynasty exegetics that was built on qi 氣-theory, enabling him to perceive the true existence of all things from the ontological perspective of Dao 道 or “Non-being” (wu 無). Breaking the boundary between Confucianism and Daoism, WANG Bi endeavored to reconcile their conflicts. It can be largely attributed to WANG Bi’s efforts that Daoism transformed from “Huang-Lao 黃老” thought in the Han Dynasty to “Lao-Zhuang 老莊” thought in the Wei-Jin dynasties period.