Film is the latest among seven major arts and film art form was not basically formed until the 20th century. Its development process witnesses various technological revolutions that produce diverse art schools. For any art schools, they advocate to create films based on stories. This study analyzes different stages of film development from perspective of film history. It explains necessary skills of creating good stories or mastered by narrators, as well as narrates characteristics of a good story. Finally, it reveals problems of fiction and witticism in current Chinese film art, and proposes suggestions.