This highly original study examines two millennia of literary dialogue between China and India, from the beginning of Buddhist sutra translation and its influence on various facets of Chinese literature, to the modern and contemporary Indian studies in China - and vice versa. It studies the transmission of Indian fables, myths and theatre into China, the dissemination of the Ramayana and Mahabharata, and the adaptation of certain contents from these into Chinese and Buddhist literature, and exhibits the translation and textual research of leading Indologists such as Padma Bhushan Ji Xianlin, Xu Fancheng, Jin Kemu, Huang Baosheng and Liu Anwu, as well as contemporary scholars of Indian studies in China. This study will enables readers from both countries and beyond to rediscover the flow of cross-cultural currents between the two civilisations.