Using the deconstruction theory and close reading method as the tools to analyze, this thesis tried to prove that identity is not a fixed essence. It is always constructed through memory, fantasy, narration, and myth. Jakob Heym, the leading man in Jakob the Liar is considered as a hero, although he has no hero-qualities prior to what people had in mind. As a hero he only uses a single weapon, lies, to rebuild his communities' hope and spirit to survive in a Poland ghetto. Therefore he had deconstructed the meaning and function of lies. He had managed to transform a common and constructively negative thing into a valuable one.