From the noological dimension, the relations of Taoism to V. Frankl’s logotherapy theory is investigated in this study. Subjects are 831 students from universities and junior colleges. Further, the mental health concepts of Taoism are compared with those of western thought. The Taoist Schie, based on Laotze´s thought, was designed by this author. It consists of 6 factors: Wu wei (non-effort), Contentedness, No-desire, Nature-adaptness, Humility, and Carefree. These 6 factors compose 3 higher order factors: Supreme Teh, Contentedness-and-carefree, and Humility. The findings are as follows: 1. The Taoist Scale has relevent reliability and validity. 2. Females have stronger attitude toward "contentedness, no-desire, and nature-adaptness" than males, whereas attitude toward "carefree" is in the reverse. Taoism is not central to the students, however. 3. There exists positive and negative relations between the concepts of Taoism and those of logotherapy theory. The similarity and diversity between these two thoughts are clarified. 4. The "contentedness-and-carefree" element of Taoism has contributed to mental health. Further, there exists a negtive relationship between the attitude of Taoism´s "supreme Teh" and positive indicators of western mental health. The difference in clarified in terms of different level of mental health focused by Taoism and western thought. The former focuses on soteriological, and the latter focuses on pathological reduction and existential levels. Based on previous findings, two recommendations for the further research and the establishment of a Chinese counseling model are suggested.