Modern Taiwan drama debate occurred by Yeh Rung Zhong in 1929 was concerned with the modern drama theory and drama scripts. The previous research treated this debate as a part of the discussion of New and Old Literature, and overlooked the character of the first modern drama discussion. This assey put this debate under the literature and drama history to find out its value in the new drama development which belonged to the new culture movement. This assey also traced the original reference quoted in Yeh Rung Zhong's articles and analyzed his literary view according to Japan and China drama critics' writing context. This assey pointed out three views. First, the anti-traditional idea of May Fourth literary revolution movement affected Yeh Rung Zhong to criticize the old literature writers for the moral value of literary views. Second, ＂The People's Theatre＂ written by Romain Rolland, the proletarian modern drama movement in Japan and the drama views of Chinese drama critic Sung Chun Fang inspired Yeh Rung Zhong to build his ＂Enlightened literary view＂. Yeh Rung Zhong argued that only the drama which art and entertainment coexist can attract audiences, and also achieve the purpose of cultivating people's hobbies and characters. Third, this assey became conscious about a cross-border interchanges of the drama theories among Japan, China and Taiwan, and the Taiwan new literature movement was effected by Japan and China's dissemination of literary trends by clarifying the propagation paths. These paths showed the diversity and twistiness when foreign thoughts propagated into Taiwan during the Japanese ruled period.