Fine arts and handicrafts are concerned, to a great extent, with the culture and life of the people. In Japan, these two words were first used about one hundred and twenty years ago. In the early Meiji Period, the meaning of these two words were vague. That is to say, fine arts meant the arts in general, while handicrafts was dealt with as equal to fine arts. However, handicrafts is said to be an applied art or a minor art as against paintings and sculptures which are said to be pure art. I disagree with idea or way of thinking. Therefore, I have made a study on the handicrafts of Japan and Europe, and the fine arts and handicrafts of Japan in this paper. Japanese paintings, sculptures and handicrafts have been very close to the life of its people. Accordingly, I think all of them have a very wide meaning extending from pure to applied art.