Facing problems and awkward predicaments of modernity, there are philosophical reflections and criticisms as well in the tradition of Buddhist thoughts. To the dilemma of Western modernity, Buddhism advances a series of critical solutions based on its own "rationality". Their core is to reveal that the so-called Western "modern ego" is only an illusion and the modern Western rationality itself should be "disenchanted" as well, thus realizing a kind of true ego and freedom and presenting a meaningful world. The dialogue between Buddhism and modernity presents a confronting tension. On the one hand those Buddhist thinkers are attracted by the Western enlightenment movement that achieved a number of accomplishments in science and democracy; on the other, some of them are much concerned about the crisis and illusion of modernity. It is such a conflict or tension that may be helpful to build a kind of modernity based on Chinese own traditions and to solve problems on modernity confronted by modern people.