Abstract: Deng Xiaoping's art of disposal of contradiction can be generalized as the thought of "differences in consensus", which covers many fields of Deng Xiaoping's theory. The thought is deeply rooted in traditional Chinese culture, and draws nutrition from materialist dialectics as well. It has such characteristics as sincere forgiveness, indicativeness, and obvious orientation of principle and reality. It is still of vital significance to comprehend, master and implement this act of thought in today' s transitional period when the whole society is undergoing a series of sophisticated changes.