Much researches and interpretations have been done on the Disposition Theory by Yuan Hongdao, the literati of the Ming Dynasty. However, there are two shortages on the previous studies: firstly, they are very scattered, and secondly, they are too general. On the basis of the previous studies, this article concentrates on Yuan Hongdaos “Comments on Xiao-xius Poems”. It sorts out and interprets the ideological sources, the historic development, the essential spirit and the internal logic of Yuan Hongdaos Disposition Theory, while comparing his other important documents and those by Li Zhi and other scholars. “Comments on Xiao-xius Poems” contains the basic thought of Yuan Hongdaos letters and essays in the same period and it has direct spiritual relationship of inheritance with Li Zhis Childish Mind Theory. However, as a guiding document of the Disposition Theory, it deeply and systematically expresses the spiritual pursuit of the literature in the late Ming Dynasty to break through traditional social restraints and to express freely.