The purpose of this article is to study Jean Baudrillard’s thought processes and his path of thought of “illusion” in the article Aesthetic Illusion and Disillusion. The article is composed of four main sections, focusing on the evolution and replacement of the concept “illusion” by illustrating different domains in the contemporary world demonstrated in Baudrillard’s article: the “disillusion” of art and films, the “simulation” of images, the “advertisement” of objects and the “ideas” of art theories. Through excerpts and analysis, it comes to a conclusion that Baudrillard seems to be utilizing the relationship between art and “illusion” to respond to the problems of contemporary art, but in fact he uses the concept of “illusion” to connect the flow and changes of the entire contemporary world.