This paper analyzes the rationality and limitations of Literary Theory’s “shift to cultural studies.” According to the scholars who insist on this shift, there are some issues that damage the “legitimacy” of the discipline’s existence given the development of contemporary Literary Theory. But Literary Theory can still recognize clearly the new realities in the development of contemporary literature. And it is not enough to study new forms such as mass media, network literature, and the institutions of literature in order to solve the problems in the discipline of Literary Theory. The innovation and construction of Literary Theory need to “turn to life” and aim to study and resolve practical problems in our new literary life.