Abstract: Theoretical xiaoshuo hua (XSH, fiction discourse) emerged in the late Qing Dynasty and early Republic of China. Its rise and fall were closely linked to the integration of Chinese and Western literary forms. Drawing on the chapter-based structure and the speculative, systematically organized discourse of Western academic writing, XSH achieved qualitative theoretical transformation. Conversely, its adherence to the traditional hua (discourse) style contributed to their quantitative proliferation. This style is characterized by flexible length and the integration of critical commentary with theoretical discussion. Nevertheless, their insufficient embodiment of the stylistic features and their weak theoretical construction signaled a failed integration of Chinese and Western forms, inevitably leading to their decline. Further exploration into Chinse-Western stylistic integration was limited by the constraints of XSH and the upheaval of the May Fourth New Culture Movement during this period. It, however, profoundly influenced later treatises that came to dominate the modern transformation of Chinese fiction criticism. The evolution of fiction-theoretical genres and their interaction with the times can be explored from a stylistic angle. Such an exploration may therefore provide a feasible way to modernize and localize the study of fiction theory.