Abstract: Yang Xiong has a complicated character and his works are also abstruse. Interpretation to him and his works has long been a controversial issue, even a 'case' of two thousand years old in Chinese cultural history. Yangzi Fayan is a comprehensive book of profound truths in simple language, which has been interpreted in various ways. Modern Interpretation to Yangzi Fayan simplifies the complex philosophies, expresses the profound theories clearly, develops the classical philosophies and inspires the readers, which is of great academic value and contemporary significance.