Angela Carter is a famous female writer in the 20 th century who is known for her feminism, Gothic feature and magical realism. She is good at rewriting classical tales and adding new ideas and concepts to them. The Company of Wolves is one of her rewriting pieces. In this story, Carter takes The Little Red Riding Hood as her writing base. At the same time, she challenges the idea of the inferiority and natural dependence of female in the original fairy tale.Carter defamiliarizes her story from the traditional one as well as imitates it. In this way, she produces psychical distance and gives readers a sense of freshness. This paper tries to analyse Carter's work from Bullough's"Theory of Psychical Distance". By analyzing the exceptional characters and their abnormal desires, it aims to reveal Carter's special way to produce psychical distance.