This paper attempts to explore the relationships between Lin Tai-yu, the heroine of Red Chamber Dream, and the goddesses in Chinese fairytales and folk stories since the earliest days. We want to prove that Tai-yu is a model character reflecting the true, the good and the beautiful of life. Moreover, the research finds that the narrative and lyric traditions are joined together in Red Chamber Dream. We would make the discussion from three aspects: l. The myths of "yao-grass" (a fabulous plant of fairyland) and the goddess of Mountain Wu: Lin Tai-yu, dying unmarried, maintains an image of virgin, a pure young lady, forever. 2. The delicate and touching young goddess in the Mountain Spirit of the Nine Songs and the tender and graceful goddess of Mountain Ku-yeh in Chuang-Tzu: Tai-yu, simple and pure, is fallen in Iove desperately and suffered bitterly. 3. The Prince and the Lady of the Hsiang River in the Nine Songs: love is a process of eternal search and pursuit; so Chia Pao-yu and Lin Tai-yu cannot unite in marriage and there is no happy ending in Red Chamber Dream.