This book is an expanded edition of the story "The Lady in the Painting", written in the style of a Chinese folktale by Fred Fang-Yu Wang. The story is told with vocabulary and structures familiar to students who have completed a basic course in Chinese. Using an inventory of only about 300 Chinese characters, it serves as an excellent transition between the short reading passages that students encounter in a basic level Chinese course and the longer and more demanding passages in subsequent levels, and it has been used as a first reader in Chinese programmes in the United States for almost five decades. This expanded edition of "The Lady in the Painting" can be used as the primary textbook for a low-intermediate class or as a supplementary text, depending upon the reading proficiency of the students. The CD-ROM provides sentence-by-sentence and paragraph-by-paragraph audio recordings for listening practice, as well as listening comprehension questions and dictation sentences that can be used for writing characters or Romanization. Each of the eight chapters of the book includes an expanded vocabulary list, structure notes and exercises and reading comprehension questions.