For hundreds of years,the western people have a keen interest in China,and there are so many Chinese literary works,which more or less embody the western people's imagination and misinterpretation for the image of an alien.This paper aims to interpret the Lost Horizon by British novelist,James Hilton.By analyzing the political and economic changes in Britain and the west in the background,and the author's own political views,religion and culture ideas,it imposes that this novel superficially reflects Hilton's Utopian illusion for Shangri-la area in China,and it is more of an ideological in work embodying in orientalism.