Are there basis for the existing of folk law in China which is in the process of rule of law? How can we treat with folk law? The forming of dual framework of state-society provides social condition for folk law. The insulation of big tradition and Small tradition provides culture soil for the existing and playing role of folk law. The right way in dealing with the relation of state law and folk law is not extruding and perishing one by the other but rational dialogue and communication basing on respecting each other.