With the promotion of standard Chinese in China, dialects are becoming less and less important or even extinct. However, in Shanghai where the economy is developing very fast, the relationship between the dialect and standard Chinese in the field of literature seems returned to the original state at the beginning of modern Chinese literature. With the development of contemporary and modern Chinese literature as a context and Shanghai writers as an example, this paper will analyze the great influence of standard Chinese and dialects on contemporary and modern Chinese literature, the different manifestation between Northern and Southern areas, and the complicated reasons of this phenomenon.